21Shares Launches World’s First Cardano and Stellar Crypto ETPs | ETF strategy
Digital Asset FTE Specialist 21 Shares introduced the world’s first ETPs offering exposure to ADA and XLM, the native tokens that underpin the cardano and stellar blockchains, respectively.
the Cardano ADA ETP (AADA SW; DADA GS) and ETP Stellar XLM (AXLM SW; XLME GS) have listed on Swiss stock exchange SIX in US dollars and above Boerse Stuttgart in euros.
Cardano is a smart contract platform for developers to build decentralized applications. Unlike other leading smart contract platforms such as Ethereum, cardano powers its trade settlement using a proof-of-stake algorithm, a structure seen as less risky in terms of potential for miners. to attack the network.
Cardano was developed by Ethereum co-founder Charles Hoskinson and conducted its first settlements in 2017. Its native token, ADA, is currently ranked as the sixth largest cryptocurrency in the world with a total market cap of over 38 billions of dollars.
Stellar, on the other hand, is a specially designed blockchain enabling the transfer of all assets and allowing developers to create low-cost financial services on the platform. Stellar was founded in 2014 by Jeb McCaleb, co-founder of Ripple, and has since processed over 450 million transactions made by over 4 million users.
Its native token, lumen (XLM), a utility token for the payment of platform transaction fees, is currently ranked as the seventeenth largest cryptocurrency in the world with a market capitalization of around $ 10.5 billion. dollars.
ETPs offer institutional investors easy access to ADA and XLM via liquid and regulated vehicles without the technical challenges of setting up private keys or crypto wallets.
ETPs use direct replication, known as “physical”, each share being 100% guaranteed by a corresponding investment in ADA or XLM. Each cardano and stellar ETP unit will be supported by approximately 16 ADA and 40 XLM, respectively, at launch.
Physical tokens (in the digital sense) are stored using institutional grade custodial solutions, Kingdom Trust and Coinbase providing custody services for ADA and XLM respectively.
Both ETPs carry a management fee of 2.50%.
Earlier this year, 21Shares unveiled the 21Shares Polkadot ETP (PDOT GY), the world’s first ETP to provide exposure to DOT, the token behind the innovative Polkadot multichain.
21Shares now offers a suite of nine single-asset crypto ETPs (bitcoin, ethereum, bitcoin cash, ripple, binance, tezos, polkadot, cardano and stellar) as well as four multi-crypto index ETPs. The company reports renewed interest in its products with net inflows up around 300% since the first quarter of 2021.
Hany Rashwan, CEO of 21Shares, said: “As the leading crypto ETP issuer, Swiss and European institutions ask us for simple and efficient access to new blockchain technologies. These new ETPs deliver what they asked for, and we plan to add two new crypto ETPs this quarter in addition to the new listing sites.