21Shares launches bitcoin exchange-traded product tailored to the bear market

Quick Take

  • 21Shares announced its Crypto Winter Suite on Wednesday, geared towards investors navigating the crypto bear market.
  • The first product, 21Shares Bitcoin Core ETP, will begin trading today.

Crypto exchange traded product (ETP) issuer, 21Shares, launched a new product line on Wednesday, aimed at investors faced with the current diminished crypto prices. 

21Shares Bitcoin Core ETP (CBTC) has gone live on the Swiss exchange, SIX, the first product in the issuer's “Crypto Winter Suite.” The firm decided to launch these new products in light of the crypto market downturn, and the potential for a prolonged period of decline, known colloquially as a crypto winter. 

The CBTC ETP aims to give investors low-cost exposure to bitcoin (BTC), with a total expense ratio of 21 basis points, or 0.21% — 44 basis points below the next product. In order to afford this, a portion of the underlying crypto will be lent out on a fully collateralized basis. Lending has not yet begun; it will begin once the product achieves sufficient scale. 

Arthur Krause, director of ETP product at 21Shares, told The Block that the firm was aware of the current backdrop and delivered the new suite of products to help investors navigate these market conditions. 

ETPs are a debt instrument, which are 100% collateralized by an underlying asset, in this case bitcoin. Investors in ETPs can redeem their investment in return for the underlying asset. Exchange-traded funds (ETFs) and ETPs are often used interchangeably, since ETFs are the most popular type of ETP.

In April 21Shares launched a physically-backed ether (ETH) and bitcoin ETF in Australia. Both of these products have been trading down since launching on May 12, following the collapse of the Terra blockchain.

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