21Shares to launch world’s first Polkadot-based ETP

The Swiss company 21Shares announced the launch of an exchange-traded product (ETP) based on Polkadot, aimed at institutional investors.

On February 4, the DOT ETP will begin trading in the regulated segment of SIX, the largest Swiss stock exchange. The product’s securities will be backed by DOT tokens.

Hani Rashwan, CEO of 21Shares, attributed the move to unprecedented demand from institutional investors for Polkadot. He said that in the next three months the firm would add two or three ETPs and list new instruments on European exchanges.

“After an investor buys the first Bitcoins through an ETP, he moves on to investing in other cryptocurrency assets. The DOT ETP will provide a safe, regulated and simple way to access the new blockchain technology,” Rashwan said.

The CEO noted that the new product lowers barriers to entry for newcomers to the cryptocurrency industry.

As of writing, Polkadot ranks fifth among crypto assets by market capitalization, at about $16.26 billion, according to CoinGecko. The DOT token trades around $17.

Earlier, on January 19, the SIX Swiss Exchange announced the launch of a Bitcoin-ETP by the digital asset management company CoinShares.

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