21Shares AG, one of the leading issuers of crypto exchange-traded products (ETPs), announced today that it is launching the first-ever Polkadot ETP on the Swiss Stock Exchange (SIX Exchange). The company also mentioned that Polkadot was included in the 21Shares HODL basket ETP as the second-largest constituent recently.
According to the official announcement, the Polkadot ETP will allow clients to invest and diversify their portfolios. The company mentioned that it has seen a significant surge in demand for crypto assets recently.
Polkadot is an open-source multi-chain protocol that allows cross-chain transfers of data or assets. It acts like a structure that allows otherwise independent blockchains to communicate with each other.
Polkadot (DOT) is the fifth-largest cryptocurrency in the world with a total market cap of more than $15 billion. DOT is currently trading near $17, up more than 80% since the start of 2021. The market cap of DOT jumped above Cardano, Litecoin, and Chainlink in January.
Commenting on the recent announcement, Hany Rashwan, CEO of 21Shares AG, said: “European investors are approaching us to launch new products based on other key crypto assets to enable them easy access without the need for a private key or unregulated wallets and exchanges. We benefit from trusted partners for the liquidity provision and upon continued institutional demand, we are launching the DOT ETP to give investors a safe, regulated, and easy way to obtain exposure to this exciting new blockchain technology.”
Physically Backed Polkadot ETP
The company mentioned that every single share available in the Polkadot ETP will be backed by the physical DOT tokens.
“The DOT ETP will allow clients to invest, diversify through its various ETPs, and gain exposure to the multi-chain application environment that enables cross-chain interoperability on a level previously not possible via their traditional broker or bank. The ETP structure means that the product benefits from 100% physical collateralization. In addition, on exchange liquidity provision is assured by our existing ETP market markets who have supported us since inception back in November 2018. This allows even more conservative institutions to safely hold this asset class via an Exchange Traded Product,” the official announcement states.