21Shares has announced two new ETPs (Exchange Traded Products) on the SIX Swiss Exchange. The 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) are the two new products. They are a part of 21Shares’ Crypto Winter Suite. The Winter Suite includes products that help investors go through a bear market.
Swiss corporation 21Shares is headquartered in Zug and has offices in Zurich and New York City.
How do the new Bitcoin and Ethereum ETPs work?
21Shares is the largest issuer of crypto ETPs. The two new ETPs aim to limit volatility and track the S&P Bitcoin Dynamic Rebalancing Risk Control 40% Index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% Index. Furthermore, the new ETPs are designed to rebalance assets when volatility increases dynamically. The two ETPs will allocate more assets to USD when Bitcoin and Ethereum volatility rises, and vice versa. Additionally, the products replicate the S&P Dow Jones indices’ benchmark that controls risks.
Arthur Krause, Director of ETP Product at 21Shares, said,
“Data from our research team shows that adding Bitcoin or Ethereum exposure to a traditional investment portfolio can significantly enhance overall risk-adjusted performance.”
Krause added that the new products allow investors to reap the benefits of crypto exposure with a controlled volatility.
Sharon Liebowitz, Senior Director, Innovation at S&P Dow Jones Indices, said,
“Over the last two years, S&P Dow Jones Indices have been developing cryptocurrency indexing capabilities to help promote more transparency and facilitate access to this emerging technology-driven asset class.”
Both products are available in USD on the SIX Swiss Exchange. Additionally, the launch follows in the footsteps of 21Shares’ Bitcoin Core ETP. The Core ETP was the first product in 21Shares’ Crypto Winter Suite. Moreover, 21Shares introduced the world’s first USD Yield ETP in May. In Addition, this was preceded by the launch of two cryptos ETFs in Australia. Also, the SIX Swiss Exchange saw the listing of the world’s first Bitcoin and Gold ETP.
21Shares also recently published its sixth “State of Crypto” report. The study looks at current developments in the crypto sector, and it also looks at how investors are improving their holdings.