Switzerland-based asset manager, 21Shares has today announced that it would soon launch an exchange-traded product (ETP) tracking Polkadot (DOT), the industry’s third-largest cryptocurrency by market cap.
According to a press release, the ‘DOT ETP’ will list on the Swiss Stock Exchange (SIX Exchange) on February 4, making it the first of such product dedicated to Polkadot. Last week, 21Shares used Polkadot (DOT) to replace Bitcoin Cash (BCH) in its 21Shares HODL basket ETP, and will now follow that up by launching an independent DOT ETP.
Unlike exchanges where investors have to build and hold the assets, an ETP allows investors, especially institutions, to gain exposure to an asset without holding or storing it. The ETP issuer offers a product tracking the asset’s price, and investors can either see profit or loss based on the asset’s performance.
Commenting on the new ETP, 21Shares AG CEO, Hany Rashwan noted that the firm has witnessed an “unprecedented demand “from institutional investors wanting exposure to crypto-assets without managing private keys or using cryptocurrency exchanges.
He also disclosed the company’s plan to launch two or more ETPs within the next three months, and list their existing products on more European exchanges.
Interestingly, DOT was also listed among the cryptocurrencies that New York-based asset manager, Grayscale incorporated for the launch of an investment product.
DOT Emerges Third-Largest Crypto Asset
21Shares upcoming DOT ETP listing follows a period of remarkable growth of Polkadot.
Since launching its genesis block last year, the Web3 foundation backed project has quickly climbed the ranks, and eventually settled as third-largest cryptocurrency by market cap, only behind Bitcoin (BTC) and Ether (ETH).
Polkadot aims to become the blockchain that connects existing blockchains, allowing them to communicate and seamlessly share resources.
The project’s native token DOT currently trades at $17.16 with a $15.5 billion market cap. In mid-January, DOT hit an all-time high of $19.32 before entering a consolidation phase during which it has stayed above the $15 mark over a 14-day period.
