Institutional Investors Get Direct DeFi Exposure via 21Shares' dYdX ETP Launch

21Shares AG, a Switzerland-based provider of cryptocurrency exchange-traded products (ETPs), has expanded its portfolio to 48 ETPs with the launch of its latest offering tied to dYdX, a decentralized exchange platform. The dYdX ETP is the first in a series of upcoming products aimed at broadening access to the decentralized finance (DeFi) sector for institutional and retail investors. The move reflects growing demand for diversified exposure to emerging blockchain protocols and decentralized applications within the traditional financial system. The product is structured as a physically backed ETP, meaning it holds the actual underlying dYdX tokens, providing investors with direct exposure to the asset.

The ETP is listed on the Swiss exchange SIX and is available for trading in both EUR and USD, catering to a wide range of international investors. According to 21Shares, the offering complements its existing lineup of ETPs, which includes products tied to Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies. The dYdX ETP is structured to track the price of the dYdX token, which is used to govern and secure the dYdX protocol. The platform, which went fully decentralized in December 2021, has seen significant growth in its user base and trading volume, making it an attractive asset for investors seeking exposure to DeFi innovations.

Investor interest in DeFi-related assets has surged over the past year, with ETP providers adapting to meet this demand by expanding their product offerings. 21Shares has been at the forefront of this trend, having launched several DeFi-related ETPs in recent months. The firm has previously introduced ETPs linked to Aave, Uniswap, and The Graph, among others. These products are designed to offer investors a regulated and transparent way to access a sector that has historically been dominated by over-the-counter trading and limited institutional participation.

According to recent data from 21Shares, the dYdX ETP is expected to attract both crypto-native and traditional investors who are looking to diversify their portfolios with exposure to high-growth DeFi projects. The firm also noted that demand for ETPs tied to DeFi protocols has outpaced expectations, with several products reaching their initial listing size within days. The dYdX ETP is available in both in-kind and cash forms, allowing investors to choose the method that best suits their liquidity needs.

The launch of the dYdX ETP aligns with broader industry trends of increased institutional adoption of crypto assets. Regulators in several jurisdictions have taken a more favorable stance toward crypto ETPs in recent months, with Switzerland, Germany, and the United Kingdom approving new products and expanding existing frameworks to support the growth of the asset class. 21Shares has been a key player in this regulatory evolution, working closely with authorities to ensure compliance and investor protection. The firm has also expanded its operations into new markets, including the UK and Germany, where demand for crypto ETPs continues to rise.