Institutions Get Regulated Access to dYdX Derivatives via 21Shares ETP

21Shares AG, a Swiss-based issuer of crypto exchange-traded products (ETPs), has launched the first physically backed ETP on dYdX, a decentralized exchange known for its derivatives and perpetual futures trading. This new ETP allows institutional investors to gain direct exposure to dYdX without holding the underlying asset, marking a significant step in the expanding crypto derivatives market as demand for diversified, regulated crypto products continues to rise. The product is offered in both USD and EUR, catering to a broad range of European and global investors seeking to hedge or gain long-term exposure to the derivatives market.

The launch of 21Shares’ dYdX ETP reflects growing institutional interest in crypto derivatives. In recent months, several major players have entered the space, including 21Shares, which already offers ETPs on Bitcoin and Ethereum. The dYdX ETP is the latest in a series of products aimed at institutional investors, who are increasingly looking for ways to access the crypto market through traditional financial vehicles. This trend is driven by the need for transparency, regulatory clarity, and risk management in the volatile crypto landscape.

The move aligns with broader regulatory developments in Europe and the U.S., where authorities are working to bring crypto derivatives under a more structured oversight framework. The European Securities and Markets Authority (ESMA) has been monitoring the crypto derivatives sector closely, particularly in light of concerns over market manipulation and the risks associated with leveraged products. Meanwhile, in the U.S., the Commodity Futures Trading Commission (CFTC) has signaled its intent to expand oversight into crypto derivatives, reinforcing the need for institutional-grade products like the 21Shares dYdX ETP.

Institutional adoption of crypto derivatives has also been accelerated by the performance of spot crypto ETFs and the surge in trading volumes on major exchanges. According to data from CoinAnk, Ethereum's trading volume on decentralized exchanges reached a record high in August 2025, driven largely by stablecoin activity and derivatives trading. This trend suggests that institutional capital is flowing into the derivatives market as investors seek ways to leverage their positions and hedge against market volatility.

The dYdX ETP is particularly timely given the broader macroeconomic environment. As central banks in both the U.S. and Europe continue to signal rate-cutting paths, investors are seeking assets that can offer both growth and diversification. dYdX, as a derivatives platform, benefits from high liquidity and is often used by traders for short-term speculation and hedging. By offering an ETP on the token, 21Shares is enabling institutional investors to participate in this activity without the complexities of managing direct positions in crypto derivatives.

Analysts suggest that the success of the dYdX ETP will depend on several factors, including the performance of the underlying token, broader market sentiment, and the regulatory environment. While the product is structured to provide exposure to dYdX, it is not immune to the risks inherent in the crypto market, such as volatility and liquidity constraints. However, the fact that it is a physically backed ETP rather than a synthetic one may reduce some of the counterparty risks that have historically plagued crypto derivatives.

Despite these challenges, the launch of the dYdX ETP is seen as a milestone in the evolution of crypto derivatives. It demonstrates how traditional financial institutions are adapting to the changing landscape and responding to growing investor demand for access to the crypto space through familiar and regulated vehicles. As more products like these enter the market, it is expected that institutional participation in crypto derivatives will continue to grow, further integrating the crypto market into the broader financial ecosystem.