21Shares unveils first ‘Celestia’ crypto ETP

Feb 22nd, 2024 | By | Category: Alternatives / Multi-Asset

21Shares has expanded its line-up of digital asset investment products with the world’s first ETP providing directly backed exposure to TIA, the native token of the Celestia platform.

Mandy Chiu, Head of Financial Product Development at 21Shares

Mandy Chiu, Head of Financial Product Development at 21Shares.

The 21Shares Celestia Staking ETP (ATIA FP; ATIA NA) has been listed on Euronext Paris and Euronext Amsterdam in euros and US dollars, respectively.

Launched in October 2023, Celestia serves as a pioneering Layer 1 modular data availability network, setting a new standard for blockchain scalability and efficiency.

Rollups (layer two blockchains that process transactions away from the main blockchain to reduce transaction costs and increase throughput on the main chain) use Celestia as a network for publishing and making transaction data available for anyone to download. For them, Celestia provides high-throughput data availability that can be easily verified.

With its interoperable framework, unique consensus mechanism, and data availability sampling (DAS) technology, Celestia reduces maintenance costs by nearly 99% and can securely scale with the number of users, making it easy for anyone to launch their own blockchain.

TIA is used to pay for Celestia’s data availability solutions and to pay gas fees on Celestia-based rollups. With a total market capitalization of more than $2.9 billion, TIA is currently the 38th largest crypto asset globally.

Mandy Chiu, Head of Financial Product Development at 21Shares, commented: “Celestia represents the future of blockchain architecture, and we are thrilled to offer investors the opportunity to participate in its growth through our Celestia ETP. As the world’s largest issuer of cryptocurrency ETPs, we are committed to delivering innovative investment products that unlock the potential of emerging blockchain technologies.”

The 21Shares Celestia Staking ETP offers institutional investors easy access to TIA through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.

It uses full direct, ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in TIA which is stored using an institutional-grade cold-storage custody solution provided by Coinbase.

The ETP also earns a passive return attributable to ‘staking’ income generated by the underlying TIA.

Staking is a way of earning rewards for holding certain cryptocurrencies that work on a proof-of-stake consensus mechanism. Proof-of-stake mechanisms put their underlying cryptocurrency to work in verifying and securing transactions on the blockchain. Investors who choose to take part in this process ‘stake’ their cryptocurrency holdings and earn rewards for doing so.

Staked coins do not move from the secure custodian where they are stored, and the ETP remains 100% physically backed at all times. 21Shares has not specified the expected returns from staking proceeds.

The ETP comes with an expense ratio of 2.50%.

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