DeFi Meets Institutional Rigor as 21Shares Bridges dYdX to Mainstream Finance

21Shares, a Switzerland-based asset manager and one of Europe’s largest issuers of crypto exchange-traded products (ETPs), has launched a new ETP tied to dYdX’s native token, DYDX. This product is designed to provide institutional investors with regulated access to one of the largest decentralized derivatives protocols in the market. The ETP, which began trading this week, is physically backed by DYDX tokens held with custodians and supported by the dYdX Treasury subDAO through its operator, kpk.

dYdX, a decentralized exchange (DEX) specializing in perpetual futures, has processed over $1.4 trillion in cumulative trading volume across 230 perpetual markets. Despite its growing significance in the decentralized finance (DeFi) landscape, institutional participation has been constrained by challenges related to custody, compliance, and operational infrastructure. The new ETP addresses these barriers by enabling institutions to access dYdX through a regulated vehicle, leveraging the same infrastructure used for traditional financial assets.

Mandy Chiu, Head of Financial Product Development at 21Shares, emphasized that the ETP expands the firm’s DeFi-focused product suite, which already includes ETPs for protocols like Aave, ChainLink, and Uniswap. The dYdX ETP offers exposure to a decentralized exchange that has pioneered the use of perpetual futures, a product traditionally dominated by centralized exchanges. Chiu noted that the ETP aligns with the broader evolution of DeFi, where decentralized derivatives can be structured into transparent, exchange-traded products.

Liquidity and pricing for the ETP will be supported by market maker Flow Traders, with mechanisms in place for daily creations and redemptions to maintain alignment with the net asset value of the product. A spokesperson for 21Shares also confirmed that staking functionality for DYDX tokens will be introduced shortly, allowing investors to generate rewards through auto-compounding features. Additionally, dYdX’s expansion roadmap includes plans for Telegram-based trading, spot markets for Solana, and perpetual contracts linked to real-world assets such as equities and indices.

The ETP is listed on Euronext Paris and Euronext Amsterdam under the ticker symbol DYDX. This launch comes as both traditional and centralized crypto exchanges continue to expand their derivatives offerings. For example, Cboe has announced plans to launch continuous futures for Bitcoin and Ethereum in the U.S. market, modeled on perpetual-style contracts. In the Asia-Pacific region, exchanges like Bitget have reported significant growth in derivatives trading, with cumulative volumes reaching $11.5 trillion as of August. These trends reflect increasing institutional interest in crypto derivatives, a market that is now valued at $984 billion in perpetual contracts and $3.96 billion in futures.

The dYdX ETP is positioned to serve as a bridge between DeFi infrastructure and institutional-grade investment tools. According to Charles d’Haussy, CEO of the dYdX Foundation, the product empowers institutions to leverage the platform’s decentralized technology while maintaining the chain's full sovereignty and decentralization. As DeFi derivatives mature, the ability to package them into ETPs offers a new dimension for investors seeking exposure to innovative, decentralized financial protocols.