- 21Shares plans to list Polkadot ETP (PDOT) on SIX exchange on Feb 4
- On Friday, Polkadot was added to 21Shares HODL basket ETP, making it the second-largest constituent.
- The move to debut the first Polkadot is as a result of the increased interests of investors, coupled with the rise of cryptocurrency.
21shares Launches Polkadot ETP
The Swiss-based company, 21 shares AG, is set to unveil Polkadot exchange-traded product on Feb 4. The company said its plan to list the Polkadot ETP on Swiss stock exchange is a proactive one; and is due to the growing interest in digital currency.
Polkadot provides scalability between different blockchains, therefore allowing validators to interact easily with themselves. Such interactions can include sharing security features and transferring assets from a blockchain to another. Currently DOT’s market cap has risen to over $16.8B, therefore, placing it ahead of XRP.
Following a steady increase in the acceptance of DOT in the last few months, non-technical investors are finding it hard to interact with the token. However, with the creation of a DOT exchange-traded product, the token will gain an even wider acceptance and adoption from both experts and newbies. The ETP will help investors to diversify their asset class and grant them more exposure to interact in a cross-platform environment.
Polkadot Experiences a Rise in Value
Polkadot was, on Friday, added to 21Shares HODL basket after BCH had been removed, making it the second place in terms of its constituent following Bitcoin. Therefore, 21Shares saw it as a privilege to create a crypto-based ETP. This also made it a perfect time for investors to add more asset class to their portfolio. As there is a rise in the interest of institutional investors in the cryptocurrency, 21Shares thinks it’s a perfect move.
In a statement from the Chief Executive Officer of 21Shares, who remarked that European investors are asking that they launch novel products based on other key crypto assets, which will grant them easy access and eliminate the need for a private key and exchanges.
Following the news from 21Shares, Polkadot now sits at the fifth place on cryptocurrency ranking, based on data from CoinMarketCap. The Swiss-based company credited the drive to create a new ETP to the spike in the demand across its classes of crypto ETPs last year. The rationale for the demand is due to institutional investors who would rather have a befitting ETP grade compared to others present on the market.
What Does This Mean for Investors?
Thanks to 21 shares, investors and traders can now trade crypto using a traditional ETP tracker just as they would with normal shares. Right now 21Shares have 12 cryptocurrency ETPs listed on an exchange and is valued at $445M in AuM.
On basis of liquidity, the market makers will ensure that much liquidity is provided for this new ETP class. This will boost trust and dependence as more institutions will feel safe to hold their asset in an ETP. Finally, with the debut of this new product, 21 shares hope to provide more ETPs in the coming months. It also wants to ensure that some are listed on the European exchange.
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