21Shares launches two new ETPs in Switzerland
21Shares launches two new ETPs in Switzerland
Crypto

21Shares launches two new ETPs in Switzerland

By Vincenzo Cacioppoli - 20 Jul 2022

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21Shares today announced the listing of two new ETPs on SIX Swiss Exchange.

The new ETP indices on Bitcoin and Ethereum from 21Shares

21Shares, the world’s largest issuer of ETPs (Exchange Traded Products), announced the launch of two new products linked to Bitcoin and Ethereum

These last two products are part of 21Shares’ Crypto Winter Suite, a set of products designed to help investors weather the bear market. In detail, the two products are built specifically to try to decrease the great volatility in the markets, especially at this time of great turbulence.

The 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) were listed on the SIX Swiss Exchange with expense ratios of 2.50% each

Specifically, according to what are the disclosure notes of the two new ETPs, they are linked to the S&P Bitcoin Dynamic Rebalancing Risk Control 40% index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% index. These two indices target 40% annualized controlled volatility through dynamic allocation between the underlying cryptocurrency and US dollars.

The products are made in such a way that when volatility increases, the amount invested in the reference cryptocurrency automatically decreases and the amount invested in USD increases.

The advantages of investing in these new financial instruments

This issue of volatility has indeed become a major concern for investors in these first six months of the year. Suffice it to say that at the end of June 2022, BTC and ETH had a five-year annualized volatility of 92.2% and 121.8%, respectively.

Arthur Krause, Director of ETP Product at 21Shares, said about the launch of the new products: 

“Data from our research team shows that adding bitcoin or ether exposure to a traditional investment portfolio can significantly enhance overall risk-adjusted performance. These newest ETPs based on S&P Dow Jones Indices’ world-class indices allow investors to realize the benefits of these innovative crypto exposures while controlling for volatility”.

According to rumors, the 21Shares company, in addition to low-cost, risk-controlled long crypto exposures, will soon introduce bear market-oriented products for short-term tactical allocations.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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