Switzerland-based cryptocurrency firm 21Shares has recently made a bet on proof-of-stake (PoS) coins by launching a new crypto exchange-traded product (ETP) dedicated to staking. On Jan. 18, the company launched the 21Shares Staking Basket Index ETP, a crypto staking index designed to track up to 10 PoS cryptocurrencies, and it immediately started trading on the local stock exchange BX Swiss under the ticker STAKE.
At launch, 21Shares’ STAKE ETP tracks six digital assets, including Binance Coin (BNB), Cardano (ADA), Cosmos (ATOM), Polkadot (DOT), Solana (SOL) and Tezos (XTZ). The index will rebalance on a semi-annual basis in March and September in accordance with market shifts.
21.co director of ETP Product Arthur Krause emphasized that the 21Shares Staking Basket ETP does not engage in lending. He added that staking is a crypto-native strategy allowing investors to pledge assets to support the process of validating blockchain transactions, while lending is a traditional financial strategy where lenders are compensated for the risk that assets they lend may not be returned.
Krause also mentioned that assets like Solana, which is widely linked to the collapsed FTX exchange, have not had any impact on 21Shares’ products. He stated: “Solana — like virtually all other crypto assets — experienced significant price declines in 2022 but suffered no fundamental impairment that would preclude its inclusion in the index.”
With addition of STAKE, 21Shares and its parent firm 21.co now provide a total of 47 crypto ETP products across 12 exchanges in nine countries. The ETPs aim to provide investors with a safe and secure way to gain exposure to crypto, offering an alternative to direct crypto investment. 21 Shares’ launch comes after some major global regulators expressed concerns about cryptocurrency staking, such as the United States’ Securities and Exchange Commission chairman Gary Gensler and Thailand’s Securities and Exchange Commission.
The 21Shares Staking Basket ETP provides investors with a new way to participate in the crypto space. It is an innovative product that offers investors the potential for additional returns by contributing to the network’s security, while also providing a safe and secure way to gain exposure to crypto.