21Shares launches S&P risk-controlled Ethereum and Bitcoin ETPs

ETP providers continue to expand their offerings in light of the ‘Crypto Winter’

21Shares launches the latest product in its Crypto Winter suite - Photo:Shutterstock

21Shares has expanded its selection of exchange-traded products created to help investors benefit from the current “crypto winter” to cover Bitcoin and Ethereum. 

The 21Shares S&P Risk Controlled Bitcoin Index (SPBTC) and 21Shares S&P Risk Controlled Ethereum Index (SPETH) have listed on the Six Swiss Exchange. Both ETPs have total expense ratios (TERs) of 2.50%. 

Both will seek to soften the volatility of the two largest cryptocurrencies through a rebalancing process that allocates more assets to the US dollar during periods of substantial volatility. 

The ETPs will track the S&P Bitcoin Dynamic Rebalancing Risk Control 40% index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% index. 

Both will attempt to replicate the S&P indices benchmarks that control risk by adjusting the exposure to the underlying index and dynamically allocating US dollars. 

Arthur Krause, the director of ETP product at the Swiss firm, said: “Data from our research team shows that adding bitcoin or ether exposure to a traditional investment portfolio can significantly enhance overall risk-adjusted performance. These newest ETPs based on S&P Dow Jones Indices’ world-class indices allow investors to realize the benefits of these innovative crypto exposures while controlling for volatility.”

Sharon Liebowitz, the senior director for innovation at S&P Dow Jones Indices, hailed the firm’s development of cryptocurrency indexing capabilities, which improve transparency and access to the asset class. 

She saidd: “Our innovative indices aim to help measure and address volatility associated with the underlying cryptocurrencies.”

ETP providers launch new products in light of ‘crypto winter’

The new ETPs are the latest in a slew of cryptocurrency products launched by 21Shares in the wake of the market’s recent sell-off. Earlier this month, it launched the world’s lowest-cost directly backed Bitcoin ETP, which has an expense ratio of only 0.21%. 

The firm is by no means alone in launching new crypto ETPs that cater to the new environment. In June, ProShares launched the first short Bitcoin exchange-traded fund (ETF) in the United States.

Earlier this month, the Investment Association, the trade body representing the UK’s asset management industry, which oversees almost £10trn in assets, called on the Financial Conduct Authority to accelerate its approval and regulation of blockchain-traded products (BTPs).

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