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Crypto Institutions Eye New Horizons: 21Shares Launches dYdX Fund

Swiss asset manager 21Shares has debuted a new exchange-traded product (ETP) linked to dYdX’s native token, DYDX.

This initiative aims to extend regulated access to one of the leading decentralized derivatives protocols in the crypto space.

The ETP, which began trading this week, is supported by the dYdX Treasury subDAO and features DYDX tokens held with custodians.

Crypto ETPs offer investors a unique opportunity to buy and sell exposure to digital assets on stock exchanges, primarily in Europe.

Despite dYdX achieving over $1.4 trillion in cumulative trading volume, institutional engagement has been limited due to various operational challenges.

Mandy Chiu, Head of Financial Product Development at 21Shares, stated that the dYdX ETP is a logical addition to their existing suite of DeFi-focused products.

She also mentioned that liquidity and efficient pricing for this new ETP will be supported by market maker Flow Traders.

Chiu emphasized that dYdX adds a distinctive element to decentralized derivatives, particularly in the realm of perpetual futures contracts.

Furthermore, Charles d’Haussy, CEO of the dYdX Foundation, noted that this product allows institutions to leverage cutting-edge technology in a decentralized environment.

With this launch, 21Shares reinforces its position as the largest issuer of crypto ETPs in Europe, enhancing the options available for institutional investment in this evolving market.