New Listing

21Shares expands ‘crypto winter’ range with low vol bitcoin and ethereum ETPs

ETPs will allocate more to cash during periods of volatility

Theo Andrew

a close-up of a few coins

21Shares has expanded its ‘crypto winter’ range with the launch of bitcoin and ethereum ETPs targeting less volatility.

The 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) are listed on the Six Swiss Exchange with total expense ratios (TERs) of 2.50%.

The ETPs will track the S&P Bitcoin Dynamic Rebalancing Risk Control 40% index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% index.

Both SPBTC and SPETH will aim to soften the volatility of the bitcoin and ethereum through a rebalancing process that allocates more assets to the US dollar during periods of rising volatility.

To achieve this, it will replicate the strategy of S&P Dow Jones Indices’ (SPDJI) benchmarks that seek to control risk by adjusting the exposure to the underlying index and “dynamically” allocating to US dollars.

Arthur Krause, director of ETP products at 21Shares, said: “These newest ETPs based on SPDJI world-class indices allow investors to realise the benefits of these innovative crypto exposures while controlling for volatility.

“These ETPs are the next step in our crypto winter suite, providing investors with entry to the asset class in a risk-controlled manner.”

Sharon Liebowitz, senior director for innovation at SPDJI, added: “Over the last two years, SPDJI has been developing cryptocurrency indexing capabilities to help promote more transparency and facilitate access to this emerging technology-driven asset class.”

21Shares launched the first product of its ‘crypto winter’ range last month after it unveiled the low-cost 21Shares Bitcoin Core ETP (CBTC) with a TER of 0.21%.

In May, the ETP issuer launched the 21Shares USD Yield ETP (USDY) – listed on the SIX Swiss Exchange – which takes US dollars and lends them to counterparties against a minimum of 110% collateral in bitcoin and ethereum market-to-market daily.

However, USDY faced a dilemma within its first month and briefly stopped generating income last week as its issuer halted lending activity.

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