21Shares lists Polkadot ETP on Swiss exchange SIX
21Shares‘ Crypto Basket ETP has now replaced Bitcoin Cash with Polkadot.
21Shares, a major provider of exchange-traded cryptocurrency products (ETP), is launching the world’s first Polkadot (DOT) ETP.
The new product, called DOT ETP, will be listed on the SIX Swiss Exchange on 4 February 2021, 21Shares said on Tuesday.
Polkadot was added to 21Shares‘ flagship Crypto Basket ETP (HODL) product on 29 January. After five major cryptos such as Bitcoin (BTC) and Ether (ETH), HODL has removed Bitcoin Cash (BCH) and now lists Polkadot with the second largest share after Bitcoin.
According to HODL ETP data from MVIS Indices, Polkadot now makes up about 27 percent of the product, while Bitcoin makes up of Bitcoin Evolution about 50 percent.
A 21Shares spokesperson told Cointelegraph that the company does not make decisions about adding or removing a particular asset from the HODL ETP. The representative explained that such decisions rest with MV Index Solutions.
„As an issuer, we cannot decide what to add and take out. There is a committee that decides what components to add, increase, decrease or take out altogether.“
According to the announcement, the addition of Polkadot to the 21shares Crypto Basket ETP is the „perfect time to add another single-asset ETP to the already broad range of crypto ETPs“ that 21shares can offer.
CEO of 21Shares Hany Rashwan stressed that the company continues to serve demand from institutional investors
„After investors acquired their first Bitcoins through our ETPs, there is a natural investment transition into other crypto-assets,“ Rashwan said. He added that the firm plans to offer two or three more ETPs in the next three months:
„We benefit from trusted partners to provide liquidity and due to continued institutional demand, we are launching the DOT ETP to provide investors with a safe, regulated and easy way to invest in this exciting new blockchain technology. In the next 3 months, we aim to launch 2 to 3 more innovative ETPs.“
Polkadot is a next-generation blockchain protocol that connects multiple specialised blockchains into a unified network. In mid-January 2021, Polkadot’s proprietary token called DOT made headlines when it overtook XRP to become the fourth largest cryptocurrency. At the time of going to press, DOT was at $16.82. That’s an increase of almost 5 per cent in the last 24 hours and around 82 per cent in the last 30 days, according to data from CoinGecko.