21Shares AG, a Zurich-based investment provider, is launching the world’s first exchange-traded Polkadot product (ETP).
The DOT ETP will be listed on the SIX Swiss Exchange on Thursday, February 4th, the company said in a statement on Tuesday. DOT is the native token of the Polkadot network.
DOT has since been added to 21Shares’ Crypto Basket ETP (HODL), which tracks five major assets including Bitcoin (BTC) and Ethereum (ETH). Since its launch on Jan 29, DOT accounts for 50%, 27% of the product behind BTC.
Hany Rashwan, chairman of the board of directors of 21Shares, said the company has seen “unprecedented demand” from institutional investors looking for exposure to crypto assets. He explained that the demand for crypto ETPs has increased 500% since the third quarter of 2020, but interest in DOT has increased recently.
“After investors buy their first bitcoins through our ETPs, there is a natural transition to investing in other crypto assets,” Rashwan explained.
“We benefit from trusted liquidity provision partners and, in response to continued institutional demand, we are launching the DOT ETP to provide investors with a safe, regulated and easy way to get involved in this exciting new blockchain technology,” he added.
Rashwan announced that 21Shares, an issuer of exchange traded products, plans to add up to three ETPs over the next three months. He said European investors turned to the company to bring new products to market.
Developed by Ethereum co-founder Gavin Wood, Polkadot is a cross-block blockchain that enables the transfer of any type of data or asset, not just tokens. It is also used as an electronic payment system.
DOT is now the fifth largest cryptocurrency in the world with a market capitalization of $ 16.55 billion. This is based on data from Markets.Bitcoin.com. At the time of writing, DOT is trading at $ 17.22, an increase of 8% over the past 24 hours.
What do you think of the Polkadot ETP? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
