21Shares Launches S&P Risk-Controlled Bitcoin and Ether ETPs

In an ever-evolving landscape of digital assets, managing risk while capitalizing on growth potential remains a paramount concern for investors. Addressing this demand head-on, 21Shares, a leading issuer of crypto exchange-traded products (ETPs), has unveiled its latest innovation: S&P risk-controlled Bitcoin and Ether ETPs. This strategic move aims to provide investors with a more balanced approach to accessing the volatile world of cryptocurrencies. These ETPs are designed to soften the inherent volatility of Bitcoin (BTC) and Ether (ETH) by strategically combining exposure to these leading cryptocurrencies with cash positions. This innovative approach enables investors to participate in the potential upside of digital assets while mitigating downside risk, making it an attractive option for both seasoned crypto enthusiasts and newcomers alike.

Zurich, 21Shares AG ( 21Shares ), one of the world s largest issuers of crypto exchange-traded products (ETPs), today announced the launch of the 21Shares Hedera ETP (Ticker

The launch of these risk-controlled ETPs highlights 21Shares' commitment to providing diverse and sophisticated investment solutions within the digital asset space. By leveraging the established credibility of the S&P indices and combining it with their expertise in crypto ETPs, 21Shares is offering a product that aims to bridge the gap between traditional finance and the decentralized world of cryptocurrencies. This initiative also underscores the increasing institutional demand for regulated and secure exposure to digital assets, paving the way for wider adoption and integration of crypto into mainstream investment portfolios. The launch signifies a crucial step towards making crypto investments more accessible and manageable for a broader range of investors.

Zurich, - 21Shares AG ( 21Shares ), one of the world's largest issuers of crypto exchange-traded products (ETPs), today announced the launch of the 21Shares Hedera ETP (Ticker: HDRA). The product is now listed on Euronext Amsterdam (USD) and Euronext Paris (EUR), offering investors simple, transparent, and regulated access to

Understanding the 21Shares Risk-Controlled ETPs

The core concept behind the 21Shares S&P risk-controlled ETPs is to offer investors a smoother ride in the often turbulent crypto market. But how exactly do these ETPs work, and what makes them different from simply buying Bitcoin or Ether directly?

21Shares has launched an exchange traded product (ETP) in Europe, providing investors with exposure to Crypto.com s Cronos token, the asset manager said. The ETP is listed on Euronext s Paris

How They Work: Balancing Crypto Exposure with Cash

The key to these ETPs lies in their dynamic allocation between Bitcoin or Ether and cash. The ETPs utilize a risk-management strategy based on the volatility of the underlying cryptocurrencies. When volatility is high, the ETPs reduce their exposure to Bitcoin or Ether and increase their cash holdings. Conversely, when volatility is low, the ETPs increase their exposure to the cryptocurrencies, aiming to capture potential gains. This dynamic allocation ensures that the overall risk profile of the ETP remains within a predefined target range.

For example, if Bitcoin's price suddenly becomes highly volatile, the ETP would automatically reduce its Bitcoin allocation and increase its cash position. This helps to protect investors from significant losses during periods of market turmoil. Similarly, when Bitcoin's price stabilizes, the ETP would increase its Bitcoin allocation to take advantage of potential price increases.

Benefits of Risk-Controlled ETPs

• Reduced Volatility: By actively managing exposure to Bitcoin and Ether, these ETPs aim to provide a less volatile investment experience compared to directly holding the cryptocurrencies.
• Diversification: While primarily focused on Bitcoin and Ether, the inclusion of cash allows for a degree of diversification within the ETP.
• Accessibility: ETPs are traded on regulated exchanges, making them easily accessible to investors through traditional brokerage accounts.
• Transparency: The holdings and performance of the ETPs are transparent, allowing investors to understand the underlying assets and risk profile.
• Regulation: As ETPs, these products are subject to regulatory oversight, providing an added layer of security and investor protection.

21Shares: A Leader in Crypto ETP Innovation

The launch of the S&P risk-controlled Bitcoin and Ether ETPs is just the latest in a string of innovative products from 21Shares. The company has consistently been at the forefront of bringing crypto investments to a wider audience through regulated and accessible ETPs.

A Diverse Range of Crypto ETPs

21Shares offers a comprehensive suite of crypto ETPs, covering a wide range of digital assets and investment strategies. Beyond Bitcoin and Ether, their offerings include ETPs focused on:

• Altcoins: Exposure to various alternative cryptocurrencies like Solana, Cardano, and Polkadot.
• Staking: ETPs that allow investors to earn rewards by staking their crypto holdings. For example, the 21Shares Stacks Staking ETP provides exposure to Stacks, a protocol that unlocks Bitcoin's potential as an infrastructure for decentralized applications.
• Thematic Investments: ETPs that focus on specific themes within the crypto space, such as the metaverse or decentralized finance (DeFi).
• Crypto Baskets: ETPs that provide diversified exposure to a basket of cryptocurrencies, such as the 21Shares Crypto Basket 10 Core ETP.

This diverse range of ETPs allows investors to tailor their crypto investments to their specific risk tolerance and investment goals.

Expansion and Growth

21Shares' commitment to innovation and accessibility has fueled its rapid growth and expansion. With 46 products on 12 exchanges across nine countries, 21Shares is the largest provider of digital asset-backed ETPs. The company's recent achievements include:

• Launching the 21Shares Hedera ETP (HDRA), providing European investors with exposure to Hedera's energy-efficient Hashgraph technology.
• Introducing the 21Shares Cronos ETP (CRON), offering regulated exposure to Crypto.com's Cronos token.
• Releasing BOLD, the world's first Bitcoin and Gold ETP, combining exposure to these two asset classes.
• The parent company, 21.co, raising $25 million, making it Switzerland's largest crypto unicorn.

Delving Deeper: Hedera, Cronos, and Stacks ETPs

While the S&P Risk-Controlled ETPs represent a significant advancement, understanding other specific ETPs offered by 21Shares provides a broader context of their offerings and the evolving crypto landscape.

21Shares Hedera ETP (HDRA): Accessing a High-Performance Network

The 21Shares Hedera ETP (HDRA) provides investors with exposure to HBAR, the native cryptocurrency of the Hedera network. Hedera is a public, distributed ledger technology (DLT) that uses a unique consensus mechanism called Hashgraph, which boasts significantly faster transaction speeds and lower energy consumption compared to traditional blockchains like Bitcoin.

Key features of the 21Shares Hedera ETP:

• Ticker: HDRA
• Listing: Euronext Amsterdam (USD) and Euronext Paris (EUR)
• Fee: 2.50%
• Backing: 100% physically backed by HBAR

Hedera's energy efficiency and high throughput (reportedly capable of 500,000 transactions per second) make it an attractive platform for various applications, including supply chain management, micropayments, and data integrity solutions. The ETP offers a bridge between regulated finance and Hedera's ecosystem, allowing investors to participate in the growth of this innovative technology.

21Shares Cronos ETP (CRON): Investing in the Crypto.com Ecosystem

The 21Shares Cronos ETP (CRON) offers investors regulated exposure to Cronos (CRO), the native token of the Cronos blockchain, which is affiliated with the Crypto.com exchange. Cronos is a layer-1 blockchain network designed to facilitate decentralized applications (dApps) and DeFi services.

Key features of the 21Shares Cronos ETP:

• Ticker: CRON
• Listing: Euronext Paris and Amsterdam
• Fee: 2.5% management fee

Mandy Chiu of 21Shares highlighted Cronos's unique position at the intersection of centralized and decentralized finance. By listing the Cronos ETP on major European exchanges, 21Shares enhances visibility and access to the Cronos network, allowing investors to participate in the growth of the Crypto.com ecosystem.

21Shares Stacks Staking ETP: Unlocking Bitcoin's Potential

The 21Shares Stacks Staking ETP is the first product on the market to provide exposure to Stacks, a protocol designed to unlock the full potential of Bitcoin as an infrastructure for decentralized applications.

Stacks uses a unique mechanism called Proof-of-Transfer (PoX), which allows it to leverage Bitcoin's security and network effects. By staking Stacks tokens (STX), investors can earn Bitcoin rewards, providing an additional incentive for holding the asset.

Navigating the Risks of Crypto ETPs

While crypto ETPs offer a regulated and accessible way to invest in digital assets, it's crucial to understand the associated risks. These risks are inherent to the underlying cryptocurrencies and the structure of ETPs themselves.

Volatility Risk

Cryptocurrencies are known for their high volatility, and this volatility can impact the value of crypto ETPs. Even with risk-controlled strategies, as implemented in the S&P risk-controlled Bitcoin and Ether ETPs, significant price swings can still occur. Investors should be prepared for the possibility of substantial losses.

Regulatory Risk

The regulatory landscape for cryptocurrencies and crypto ETPs is still evolving. Changes in regulations could negatively impact the value of these investments. It's essential to stay informed about the latest regulatory developments in the crypto space.

Security Risk

Although ETPs are traded on regulated exchanges, the underlying cryptocurrencies are still subject to security risks, such as hacking and theft. While custodians employ security measures to protect the digital assets, these measures are not foolproof.

Counterparty Risk

ETPs involve various counterparties, such as market makers, custodians, and administrators. The failure of any of these counterparties could negatively impact the ETP's value.

Liquidity Risk

While most crypto ETPs are relatively liquid, there's always a risk that liquidity could dry up during periods of market stress. This could make it difficult to sell the ETP at a desired price.

Before investing in any crypto ETP, carefully consider the Trust's investment objectives, risk factors, and fees and expenses. Read the Trust's prospectus for a thorough discussion of the risks associated with the investment.

The Role of Foreside Global Services, LLC

Foreside Global Services, LLC plays a crucial role as the Marketing Agent for these 21Shares ETPs. Foreside's responsibilities include distributing marketing materials, educating investors about the products, and ensuring compliance with relevant regulations.

Having a reputable marketing agent like Foreside helps to enhance the credibility and accessibility of 21Shares' ETPs, making them more attractive to a wider range of investors.

Who are these ETPs for?

The 21Shares S&P Risk-Controlled Bitcoin and Ether ETPs are designed for investors who:

• Want exposure to Bitcoin and Ether but are concerned about volatility.
• Are looking for a regulated and accessible way to invest in crypto.
• Prefer a hands-off approach to managing their crypto investments.
• Are seeking to diversify their investment portfolio with digital assets.

How to Invest in 21Shares ETPs

Investing in 21Shares ETPs is straightforward. Since they are listed on major European exchanges, you can purchase them through any brokerage account that allows you to trade ETPs. The process is similar to buying stocks or ETFs.

1. Open a Brokerage Account: If you don't already have one, open an account with a brokerage firm that offers access to European exchanges.
2. Fund Your Account: Deposit funds into your brokerage account.
3. Search for the ETP: Use the ticker symbol (e.g., HDRA, CRON, or those for the risk-controlled Bitcoin and Ether ETPs once available) to find the specific ETP you want to invest in.
4. Place Your Order: Enter the number of shares you want to buy and place your order.
5. Monitor Your Investment: Track the performance of your ETP and rebalance your portfolio as needed.

Conclusion: A Step Towards Mainstream Crypto Adoption

21Shares' launch of the S&P risk-controlled Bitcoin and Ether ETPs represents a significant step towards mainstream crypto adoption. By offering a product that mitigates volatility and provides regulated access to digital assets, 21Shares is making crypto investing more appealing to a broader range of investors. The integration of the S&P indices further enhances the credibility and trustworthiness of these ETPs.

The introduction of these risk-controlled ETPs, along with their existing suite of innovative products like the Hedera, Cronos, and Stacks ETPs, solidifies 21Shares' position as a leader in the crypto ETP space. As the demand for regulated and accessible crypto investments continues to grow, 21Shares is well-positioned to capitalize on this trend and drive the wider adoption of digital assets. Always remember to do your research and consult with a financial advisor before making any investment decisions.

Key Takeaways:

• 21Shares has launched S&P risk-controlled Bitcoin and Ether ETPs to reduce volatility.
• The ETPs dynamically allocate between crypto and cash based on market volatility.
• 21Shares offers a diverse range of crypto ETPs, including those focused on altcoins, staking, and thematic investments.
• Investors should carefully consider the risks associated with crypto ETPs before investing.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.