21Shares launches mid-cap crypto ETP

Dec 17th, 2021 | By | Category: Alternatives / Multi-Asset

Digital asset ETP specialist 21Shares has introduced a new ETP capturing the mid-cap portion of the crypto asset market.

Hany Rashwan, CEO of 21Shares.

Hany Rashwan, CEO of 21Shares.

The 21Shares Crypto Mid-Market Index ETP has been listed on SIX Swiss Exchange and is available to trade in US dollars (Ticker: ALTS SE), euros (ALTSEUR SE), and Swiss francs (ALTSCHF SE).

The ETP is linked to the Vinter 21Shares Crypto Mid-Cap Index which was developed by European digital asset index provider Vinter in collaboration with 21Shares.

The index consists of the eight largest crypto assets beyond the top two – currently bitcoin and ethereum – resulting in a substantially larger weight in each subsequent constituent compared to regular broad market digital asset indices that include bitcoin and ethereum.

Weighted by market value on a quarterly basis, the index currently provides exposure to binance coin (29.0%), solana (18.4%), cardano (17.0%), XRP (14.3%), polkadot (10.0%), polygon (4.7%), litecoin (3.6%), and bitcoin cash (3.1%). (Data as of 30 December)

The ETP offers institutional investors convenient access to the mid-cap portion of the digital asset market through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

The product adheres to a full ‘physical’ replication approach with each ETP share 100% collateralized by a proportional investment in the eight underlying crypto assets which are stored using an institutional-grade custody solution provided by Copper.

It comes with an expense ratio of 2.50%.

Hany Rashwan, CEO of 21Shares, said: “We are very excited to launch our first mid-cap crypto index ETP and expand our product range to 21 ETPs. This is an important milestone in our product roadmap, following the launch of the world’s first crypto ETP on the regulated SIX exchange in Switzerland in 2018.”

Jacob Lindberg, CEO of Vinter, added: “Due to the high market concentration of bitcoin and ethereum, the performance contribution of alternative crypto assets is rather small. The Vinter 21Shares Crypto Mid-Cap Index is different. Investors are provided with diversified exposure to mid-cap crypto assets, or alt-coins. Today, the index includes assets like binance, cardano, and solana, which have outperformed bitcoin and ethereum this year.”

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