Swiss cryptocurrency firm 21Shares is betting on proof-of-stake (PoS) coins by launching a new crypto exchanged (ETP) product dedicated to staking.
On January 18, 21Shares launched the 21Shares Staking Basket Index ETP, a crypto staking index designed to track up to 10 PoS cryptocurrencies. The ETP immediately begins trading on the local exchange BX Swiss under the symbol STAKE.
At launch, 21Shares ETP STAKE tracks six digital assets, including Binance Coin (BNB), Cardano (ADA), Cosmos (ATOM), Polkadot (DOT), Solana (SOL), and Tezos (XTZ). The index will be rebalanced on a semi-annual basis in March and September depending on market fluctuations.
With the addition of STAKE, 21Shares and its parent company 21.co now provide a total of 47 crypto ETP products on 12 exchanges in nine countries. ETPs aim to provide investors with a safe and secure way to gain exposure to crypto, providing an alternative to investing directly in crypto.
“STAKE provides value to investors by using ETP assets to generate a passive return that can deliver additional returns by contributing to network security,” said 21.co Director of ETP Arthur Krause. in a statement to Cointelegraph.
The launch of STAKE ETP comes a few years after 21Shares began experimenting with ETP staking. In 2019, 21Shares made its debut the 21Shares Tezos Staking ETP (AXTZ) then spear the 21Shares Solana Staking ETP (ASOL) in June 2021.
Both products saw a significant decline in 2022, which aligned with a massive crypto bear market last year. On the other hand, ETPs have increased so far in 2023 with year-to-date performance up 38% for AXTZ and 78% for ASOL.
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Krause pointed out that assets like Solana – which is largely tied to the collapse of the FTX exchange – had no impact on 21Shares’ earnings, saying:
“Solana – like virtually all other crypto assets – experienced significant price declines in 2022 but suffered no fundamental depreciation that would preclude its inclusion in the index.”
The launch of STAKE comes after some major global regulators raised concerns about cryptocurrency staking. In September, U.S. Securities and Exchange Commission Chairman Gary Gensler argued that crypto staking was “very similar” to lending, referring to massive failures in the crypto lending industry in the United States. middle of the 2022 bear market. The Securities and Exchange Commission of Thailand also banned crypto. companies to offer staking and lending services in September.
“To be clear, the 21Shares Staking Basket ETP does not commit to any loans,” Krause pointed out. He added that staking is a crypto-native strategy allowing investors to pledge assets to support the validation process of blockchain transactions, while lending is a traditional financial strategy where lenders are compensated for the risk that assets they lend are not returned.