Swiss cryptocurrency investment company 21Shares is launching two new exchange-traded products (ETPs) for bitcoin and ether with controlled risk S&P.
The 21Shares S&P Risk Controlled Bitcoin Index ETP and 21Shares S&P Risk Controlled Ethereum Index ETP will start trading on the Swiss SIX Exchange on July 20. The new products aim to reduce volatility by rebalancing assets against the US dollar. They will replicate S&P benchmarks that control risk by adjusting exposure to the underlying index.
Both ETPs target a 40% volatility level. ETP 21Shares Chief Product Officer Arthur Krause stressed that the 40% target is about volatility, not investment performance. US large-cap stocks posted a 20% year-on-year historical volatility. For bitcoin, this figure was 70%, and for ether – 80%.
S&P Dow Jones Indices Chief Innovation Officer Sharon Liebowitz emphasized that the firm has been heavily involved in cryptocurrencies in recent years. Last year, S&P launched an index that tracks the performance of the cryptocurrency market. Liebowitz noted that the new products are examples of indexes aimed at eliminating the volatility associated with underlying cryptocurrencies.
Previously, 21Shares, together with Cathie Wood, submitted an application for a Bitcoin spot ETF after a previous rejection last year.
Source: Bits
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