21Shares launches the world's first crypto-staking ETP
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(Kitco News) - Switzerland-based cryptocurrency firm 21Shares, the world’s largest issuer of cryptocurrency exchange-traded products (ETPs), has announced the launch of the 21Shares Staking Basket Index ETP (STAKE).
This would be the first crypto-staking index ETP to be offered in the global market.
The new product, which offers holders a diversified staking income, is the first “basket product of crypto assets that provide exposure to staking rewards while tracking the performance of underlying staked cryptos through a single ETP,” the press release said.
Swedish index provider Vinter collaborated with 21Shares to develop the staking index methodology used for this product. The ETP tracks a variety of proof-of-stake (PoS) cryptocurrencies, including Binance Coin (BNB), Cardano (ADA), Cosmos (ATOM), Polkadot (DOT), Solana (SOL), and Tezos (XTZ).
While the product currently tracks these six cryptocurrencies, it is designed to track up to ten PoS tokens. The index will undergo rebalancing on a semi-annual basis in March and September to reflect changes in the market.
"Staking is a long-standing feature of the blockchain ecosystem that allows crypto holders to earn rewards in exchange for locking up their assets," said Arthur Krause, Director of ETP Product at 21.co, the parent company of 21Shares. "Our research has shown that investors are interested in diversified, crypto-native return streams – especially amid crypto winter.”
Those interested in accessing the 21Shares Staking Basket Index ETP can trade it on the BX Swiss exchange. 21.co is also looking to get the product listed on Xetra Deutsche Boerse. The new ETP joins 21Shares existing single asset staking products – 21Shares Solana Staking ETP, which was launched in June 2021, and 21Shares Tezos Staking ETP, which was launched in 2019.
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In total, 21Shares and its parent company 21.co now provide 47 product listings across 12 exchanges in nine countries. Over the past year, 21Shares has launched several new products including the Bitcoin Core ETP (CBTC) and two risk-controlled products, the 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH).
The launch of STAKE comes as global regulators have increasingly expressed concerns about cryptocurrency staking and all that it entails. In September 2022, Thailand’s Securities and Exchange Commission announced a ban on crypto firms offering staking and lending services. That same month, Gary Gensler, Chair of the U.S. Securities and Exchange Commission, said that crypto staking looks “very similar” to lending.
Krause addressed these concerns directly, saying, “To be clear, the 21Shares Staking Basket ETP does not engage in any lending whatsoever.”