21Shares, a Switzerland-based crypto giant, is betting big on PoS tokens by issuing a crypto ETP (exchange-traded product) for staking. On Wednesday, the firm introduced a cryptocurrency staking index, the Staking Basket Index ETP.
This index will track over ten PoS-based digital currencies.
21Shares STAKE ETP Already Trading On BX Swiss Stock Exchange
Meanwhile, the ETP is already trading under the name STAKE, at BX Swiss, a local stock exchange. In addition, the STAKE ETP from 21Shares will track the performance of six virtual assets, including ADA, BNB, XTZ, SOL, DOT, and ATOM.
Notably, the index will adjust twice a year in March and September to reflect market changes. Presently, 21.co, the parent firm of 21Shares, offers over 47 crypto-ETP products to investors.
These ETPs are available in twelve exchanges across nine countries. Interestingly, ETPs offer a safer and more secure option for investors to gain exposure to cryptocurrencies, as an alternative to directly investing in them.
Talking about the latest announcement, Arthur Krause, 21.co ETP product director said:
“STAKE generates passive income for investors through ETP’s assets. It also offers additional returns by safeguarding the network’s security.
21Shares’ STAKE ETP launch is coming a few years after the crypto firm delved into the world of staking ETPs. 21Shares launched its first ETP, AXTZ (Tezos Staking ETP) in 2019 before releasing the ASOL (Solana Staking ETP) in 2021.
Unfortunately, both products saw a substantial decrease in interest in 2022, reflecting the bear market trend. Nevertheless, the ETPs have been successful in the early weeks of 2023, with YTD returns of 78% for ASOL and 38% for AXTZ.
Krause Clarifies The Addition Of Solana
Furthermore, Krause noted that assets such as Solana, which is commonly associated with the failed FTX exchange, have not affected 21Shares’ products.
“Solana, like many other virtual assets, witnessed a significant price decrease in 2022. However, the token did not suffer any fundamental damage that would prevent its addition to the index,” he said.
Meanwhile, STAKE’s launch occurred despite the worries of prominent regulatory bodies about cryptocurrency staking. Last September, Gary Gensler, the Chairman of the US SEC, likened crypto staking to lending, citing the numerous crypto lending platforms that collapsed over the bear market last year.
Another regulator, Thailand’s SEC, also banned crypto entities from offering lending and staking services in 2022. However, Krause clarified that 21Shares’ latest STAKE ETP would not take part in lending.
Krause argued that staking is different from lending. According to him, staking is a method where crypto investors commit their assets to validate blockchain transactions.
On the other hand, lending is a conventional financial technique where lenders are rewarded for the possibility of non-repayment of the assets they lend.
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