21Shares has launched Europe’s first short ethereum exchange-traded product (ETP) and the cheapest physically-backed ethereum product following the crypto’s transition to a proof-of-stake protocol last week.
The 21Shares Short Ethereum ETP (SHETH) and 21Shares Ethereum Core ETP (CETH) have listed on the SIX Swiss Exchange with total expense ratios (TERs) of 2.5% and 0.21%, respectively.
SHETH will reset daily to offer -1x exposure to the price of ethereum. Like the 21Shares Short Bitcoin ETP (SBTC), it does this by borrowing the underlying currency and simultaneously selling it on an execution platform.
The firm said US dollars, USDC stablecoin and ethereum are considered eligible collateral for SHETH.
CETH offers physical exposure to ethereum and charges a fee 44 basis points below other products in the same category.
It does this by lending out a portion of its underlying assets and then holding segregated collateral in cold storage, subject to daily margin calls.
In the product’s final terms, 21Shares said: “Through the use of certain collateralised lending arrangements used as collateral by the product, CETH is able to generate additional income which allows the management fee to be 0.21%. No payments will be made during the life of the product.”
Eligible assets for CETH collateral are US dollars, USD coin and bitcoin.
Arthur Krause, director of ETP product at 21Shares, added: “Now – especially given the level of interest in ethereum today – we wanted to provide investors with more options to enter the asset class with different products.”
SHETH and CETH will join the firm’s ‘crypto winter’ suite alongside its short bitcoin, core bitcoin and risk-managed bitcoin and ethereum ETPs, which commenced in June.