21Shares AG is launching Stellar’s XLM ETP (AXLM) and Cardano ADA ETP (AADA) on the regulated market of the Swiss stock exchange (SIX Exchange) on Monday, April 26th 2021.
Exchange Traded Products (ETPs) are gaining traction within the industry as one of the favorite ways for investors to get exposure to cryptocurrencies. 21Shares has seen a 3-fold increase in demand across its suite of crypto ETPs since Q1 2021 based on aggregated new inflows across the range. Demand has been driven by institutional investors.
Stellar was admitted by the Index Provider (MVIS – HODL5) to the 21Shares HODL basket ETP as the fourth constituent after Bitcoin Cash (BCH) and XRP were removed.
Cardano (ADA) is a blockchain-based smart contract platform enabling developers to build decentralized applications. Unlike other leading smart contract platforms like Ethereum, Cardano currently uses a Proof of Stake algorithm called Ouroboros to power its transaction settlement and to produce new blocks in its blockchain. Cardano was first shipped in 2017 by Input-Output (IOHK), a for-profit company, founded in 2015 by Ethereum co-founder, Charles Hoskinson who serves as the CEO.
Stellar is a purpose-built blockchain enabling the transfer of any kind of assets and currencies; for example Bitcoin, dollars and euros, and allowing developers to build low-cost financial services on the platform. Lumen (XLM), Stellar’s native token is a utility token for the platform to pay transaction fees. Stellar was founded in 2014 by Jeb McCaleb, co-founder of Ripple, and since then the network has processed more than 450 million operations made by over 4 million users.
The ETP structure is 100% physically collateralized, segregated, and replicates 1:1 the tracking of both crypto assets, according to the firm.
21Shares has partnered with Coinbase for the custody of XLM and Kingdom Trust to act as the custodian for ADA. Both products have a base fee of 2.5% p.a and will also be available on the Stuttgart and Dusseldorf MTFs.
Hany Rashwan, Chief Executive Officer at 21Shares AG, said: “Following active lobbying with the authorities to extend the innovative and forward-thinking asset launches, we are on track to deliver these new innovative and market leading crypto ETPs. As the leading crypto ETP issuer, Swiss and European institutional alike are asking us for simple and effective access to these new blockchain technologies. These new ETPs deliver what they asked for and we expect to add another 2 new crypto ETPs this quarter on top of new listing venues.”
21Shares has grown its suite of ETPs to comprise 14 Crypto ETPs: the 21Shares Crypto Basket Index ETP (HODL:SW), 21Shares Bitcoin (ABTC:SW | 21XB:GY), 21Shares Ethereum (AETH:SW), 21Shares XRP (AXRP:SW | 21XX:GR), 21Shares Bitcoin Cash ETP (ABCH:SW), 21Shares Binance ETP (ABNB:SW), 21Shares Tezos ETP (AXTZ:SW), 21shares Bitcoin Suisse ETP (ABBA:SW), 21Shares Bitwise 10 ETP (KEYS:SW), Sygnum Platform Winners Index ETP (MOON:SW), 21Shares Short Bitcoin ETP (SBTC:SW | 21XS:GY), 21Shares Polkadot ETP (ADOT:SW | PDOT:GR), 21Shares Stellar ETP (AXLM SW | XLME GR) and 21Shares Cardano ETP (AADA SW | DADA GR).
The entire suite is listed on Deutsche Boerse, SIX Swiss Exchange, BX Swiss, and some on Börse Stuttgart in CHF, USD, GBP, and EUR respectively.