Institutional Investors Now Have Regulated Access to DeFi Derivatives via 21Shares

21Shares AG has launched the 21Shares dYdX ETP on Euronext Paris and Euronext Amsterdam, offering institutional investors a regulated entry point into the decentralized derivatives market through the ticker symbol DYDX. This physically-backed ETP, with an expense ratio of 2.5%, is now part of 21Shares' 48-asset European lineup, which holds $11 billion in total assets under management. The product is backed by the DYDX token, the native asset of dYdX Chain, a decentralized exchange that has processed more than $1.4 trillion in cumulative trading volume.

dYdX is a decentralized derivatives protocol that has facilitated over 15,000 weekly active traders and generated $7.7 billion in trading volume during July. The platform’s model involves distributing real USDC to users, as opposed to inflationary token mechanics or indirect buybacks, thereby fostering a self-sustaining growth cycle of deflationary tokenomics and long-term yield. The ETP’s launch is seen as a milestone for DeFi, as it provides a regulated financial vehicle for institutional investors to access a rapidly evolving market segment.

The ETP is supported by the dYdX Treasury subDAO, which collaborates with kpk, a decentralized finance treasury manager, to align tokenholder value with the economic returns of the protocol. This alignment positions the product as a bridge between traditional finance and the decentralized finance ecosystem, allowing institutional investors to tap into dYdX’s on-chain revenue without the complexities typically associated with on-chain transactions. According to Marcelo Ruiz de Olano, CEO and co-founder of kpk, the ETP simplifies access for investors who may lack the technical knowledge to engage directly with DeFi protocols.

The launch coincides with dYdX’s strategic expansion into new markets, including real-world assets such as equities and pre-IPO shares. The protocol is set to introduce spot trading, beginning with Solana, and plans to enable Telegram-based trading for cross-platform execution. These developments signify a broader effort to integrate on-chain derivatives into traditional financial markets, potentially capturing a significant portion of the $100 trillion global derivatives market.

The ETP is also notable for its institutional adoption angle, offering a regulated and familiar infrastructure for investors. Mandy Chiu, Head of Financial Product Development at 21Shares, emphasized that the ETP aligns with the company’s mission to provide innovative financial products that bridge the gap between traditional and decentralized finance. The product was launched in response to growing demand for crypto derivatives, which have seen rising open interest and trading volumes globally.

The expansion of crypto derivatives is not limited to dYdX. In the broader market, exchanges such as Kraken, Cboe, and Bitget have also introduced or expanded their derivatives offerings. Cboe, for example, plans to launch Bitcoin and Ether perpetual futures in the US, while Kraken has expanded its derivatives capabilities following its acquisition of NinjaTrader. Bitget reported $750 billion in derivatives trading volume for August alone, indicating the growing appetite for such instruments.