21Shares has expanded its roster of crypto ETPs with the launch of two strategies targeting cardano ADA and stellar XLM.
The 21Shares Cardano ADA ETP (AADA) and 21Shares Stellar XLM ETP (AXLM) are set to list on the SIX Swiss Exchange, as well as the Stuttgart and Dusseldorf multilateral trading facilities (MTFs), on 26 April with total expense ratios (TERs) of 2.5%.
AADA replicates the movement of the ADA crypto. Each ETP unit is collateralised by 16 ADA tokens with Kingdom Trust acting as custodian.
Cardano is a blockchain-backed contract platform that allows developers to construct decentralised applications. The platform uses a proof of strike algorithm called Ouroboros to produce new blockchain blocks and settle transactions. ADA is cardano’s native crypto asset.
AXLM replicates the performance of the XLM crypto with each unit physically backed by 44 of the tokens with Coinbase acting as custodian.
Founded by Ripple co-founder, Jeb McCaleb, stellar is a blockchain specifically designed to enable the transfer of crypto and fiat currencies. XLM, also called Lumen, is stellar’s native token used by the platform for transaction fee payments.
During 21Shares’s recent rebalance, the company added stellar to 21Shares Crypto Basket Index ETP (HODL) after bitcoin cash and XRP were removed from its underlying index.
Hany Rashwan (pictured), CEO of 21Shares, said the new products come to market following active lobbying of authorities.
“Swiss and European institutional alike are asking us for simple and effective access to these new blockchain technologies,” Rashwan added.
“These new ETPs deliver what they asked for and we expect to add another two crypto ETPs this quarter on top of new listing venues.”