Swiss crypto-asset ETP issuer 21Shares has launched the world’s first ETP providing exposure to DOT, the token underpinning the innovative Polkadot multi-chain.
Hany Rashwan, CEO of 21Shares.
The 21Shares Polkadot ETP has listed on SIX Swiss Exchange in US dollars (ADOT SW) and on Boerse Stuttgart in euros (PDOT GY).
Polkadot is a blockchain of blockchains, allowing otherwise independent blockchains to communicate with each other, share security features, and transfer assets freely amongst themselves.
The DOT token serves two vital roles in the system – it is designed to participate in governance decisions, including tabling proposals and voting, and it is used as an electronic payment system.
With a current market capitalization of around $16.8 billion, the DOT token has attained the status of the third-largest cryptocurrency, surpassing Ripple’s XRP by over $4bn.
The 21Shares Polkadot ETP offers institutional investors easy access to DOT through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.
The ETP uses full direct, so-called ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in DOT. Physical (in a digital sense) DOT tokens are stored using institutional-grade custody solutions.
The ETP comes with an expense ratio of 2.50%.
Hany Rashwan, CEO of 21Shares, commented: “We remain committed to the unprecedented demand we are seeing from institutional investors wanting exposure to crypto-assets, and 21Shares remains ahead of the curve for delivering innovative yet simple financial products on the market.
“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.”
On 29 January, 21Shares admitted Polkadot to its flagship diversified crypto basket ETP, the $60 million 21Shares HODL basket ETP (HODL SW), which tracks a proprietary index consisting of the top ten cryptocurrencies ranked by inflation-adjusted market capitalization. As of 1 February, DOT represented the second-largest holding with a weight of 26.8%.