21Shares expands crypto ETP offerings with Lido DAO exposure

Quick Take

  • 21Shares has introduced an exchange-traded product (ETP), providing investors with single-asset exposure to Lido DAO’s liquid staking ecosystem.
  • 21Shares marks the ETP as a high-risk investment due to various factors, including market volatility and regulatory risk.

Crypto exchange-traded products (ETP) provider 21Shares has unveiled a new investment offering for traditional investors seeking exposure to the liquid staking ecosystem.

The recently launched 21Shares Lido DAO ETP (LIDO) enables investors to gain single-asset exposure to Lido DAO, the leading platform in the liquid staking ecosystem.

Lido has over $13 billion in ETH staked via its platform. Liquid staking enables users to lock their crypto assets to earn rewards for securing the blockchain network while maintaining liquidity to deploy elsewhere in the DeFi ecosystem. 

The non-interest-bearing, open-ended debt security is on offer to the general public in 22 European Union countries, including France, Germany and Italy, according to the firm’s issue-specific summary. It is available for trading on exchanges, such as the SIX Swiss Exchange, BX Exchange and the Stuttgart Exchange.

Currently, the ETP manages $100,000 in assets under management (AUM), contributing to 21Shares' total AUM of over $1.1 billion.

Classified as a class 7 product, the highest risk level, the ETP exposes investors to various potential risks. Market volatility risk, regulatory risk, business and operational risk, credit risk of the issuer and custodian and counterparty risk are among the key factors contributing to its high-risk designation.

21Shares warns investors must be aware of the potential losses associated with the product's future performance. Poor market conditions can significantly impact the fund's ability to provide returns. The company explicitly states that this investment carries a high risk of financial loss.

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