21Shares, a major provider of Cryptocurrency Exchange Traded Products (ETP), launches the world’s first Polkadot (DOT) ETP.
The new product, DOT ETP, will be listed on the Swiss SIX stock exchange on February 4, 2021, announced 21Shares on Tuesday.
The new ETP comes shortly after Polkadot was added to 21Shares’ flagship ETP product Crypto Basket ETP (HODL) on January 29th. After tracking five major cryptos like Bitcoin (BTC) and Ether (ETH), HODL has Bitcoin Cash (BCH) and is now listing Polkadot as the second largest component after Bitcoin.
According to HODL-ETP data from MVIS indices, Polkadot now makes up about 27% of the product, while Bitcoin makes up about 50% of the ETP.
A spokesperson for 21Shares told Cointelegraph that the company is not making any decisions about adding or deleting any particular asset from the HODL ETP. The representative stated that such decisions are made by MV Index Solutions. “As an issuer, we cannot decide what should be added and deleted […] They have a committee that decides which ingredients are added, increased, reduced or directly removed. “
Source: MV Index Solutions
According to the announcement, the addition of Polkadot to the 21shares Crypto Basket ETP is “the perfect timing to add an additional single asset ETP to the already wide range of Crypto ETPs offered by 21shares”.
Hany Rashwan, CEO of 21Shares, said the company remains committed to meeting demand from institutional investors. “After investors buy their first bitcoins through our ETPs, there is a natural transition to investing in other crypto assets,” Rashwan said. He added that the company plans to add two or three more ETPs over the next three months:
“We benefit from trusted partners for the provision of liquidity and, in response to continued institutional demand, we are launching the DOT ETP to offer investors a safe, regulated and easy way to get involved in this exciting new blockchain technology. We want to add two to three more innovative ETPs in the next three months. “
Polkadot is a next-generation blockchain protocol that connects several specialized blockchains into a unified network. Mid-January 2021. Polkadot’s native DOT token hit the headlines by overtaking XRP as the fourth largest cryptocurrency. At the time of writing, DOT is trading at $ 16.82, according to CoinGecko, up nearly 5% in the past 24 hours and around 82% in the past 30 days.