{"id":32218,"date":"2022-07-20T15:32:23","date_gmt":"2022-07-20T19:32:23","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=32218"},"modified":"2022-07-20T15:32:28","modified_gmt":"2022-07-20T19:32:28","slug":"21shares-introduces-sp-risk-controlled-bitcoin-and-ether-etps","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/21shares-introduces-sp-risk-controlled-bitcoin-and-ether-etps\/","title":{"rendered":"21Shares introduces S&P risk-controlled Bitcoin and Ether ETPs"},"content":{"rendered":"\n
Despite the collapse of the cryptocurrency markets this year, the Swiss cryptocurrency ETP company 21Shares has witnessed new crypto inflows reach new all-time highs YTD.<\/h5>\n\n\n\n
\"21Shares
21Shares introduces S&P risk-controlled Bitcoin and Ether ETPs<\/figcaption><\/figure>\n\n\n\n

With its new risk-adjusted cryptocurrency investment products, 21Shares<\/a> is attempting to match the benchmarks of the S&P Dow Jones Indices despite the over 50% decline in the cryptocurrency markets this year.<\/p>\n\n\n\n

In an effort to reduce volatility, the Swiss cryptocurrency investment company 21Shares has introduced two new exchange-traded products (ETPs) that provide investors access to the two biggest cryptocurrencies, Bitcoin (BTC) and Ether (ETH) (USD).<\/p>\n\n\n\n

On July 20, the Swiss SIX Exchange will begin trading the two products, 21Shares S&P Risk Controlled Bitcoin Index ETP\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> and 21Shares S&P Risk Controlled Ethereum Index ETP. The business revealed on Wednesday that the ETPs will trade under the tickers SPBTC and SPETH.<\/p>\n\n\n\n

By dynamically rebalancing, or allocating more assets to USD when volatility increases, both ETPs aim to reach a volatility level of 40%. The products alter the exposure to the underlying index and dynamically allocate to U.S. dollars in an effort to replicate the benchmarks of S&P indexes that control risk.<\/p>\n\n\n\n

The 40 percent aim, according to Arthur Krause, Director of ETP Product at 21Shares<\/a>, is for volatility rather than investment performance. Large-cap shares in the US showed yearly historical volatility of 20%, according to a statement by Krause. Compared to Ether, which had an 80% volatility, Bitcoin had a figure of 70%, he claimed, adding:<\/p>\n\n\n\n

\u201cThe 21Shares S&P Risk Controlled Index ETPs combine exposure to a volatile cryptocurrency with cash \u2014 which has zero volatility \u2014 to attempt to achieve the overall target of moderate volatility.\u201d<\/p><\/blockquote>\n\n\n\n

According to Sharon Liebowitz, senior director of innovation at S&P Dow Jones Indices, the company has been actively engaged in the cryptocurrency space recently. A cryptocurrency index measuring the performance of the crypto market was introduced by S&P last year. According to Liebowitz, two indices that try to reduce the volatility linked to underlying cryptocurrencies are SPBTC and SPETH.<\/p>\n\n\n\n

The new ETPs complement the Crypto Winter Suite, a bear market-focused offering from 21Shares. In the midst of the market sell-off, 21Shares launched the investment offering in June with the goal of giving investment solutions specifically created for low-cost exposure to cryptocurrencies.<\/p>\n\n\n\n

The Crypto Winter Suite, like other cryptocurrency ETPs offered by 21Shares, is intended for institutional and retail investors in nations like France, Germany, Switzerland, Austria, Sweden, the Netherlands, and Australia.<\/p>\n\n\n\n

Despite the ongoing bad market<\/a>, 21Shares has experienced a surge in new assets under management (AUM) on its platform, recently surpassing $100 billion year-to-date. According to Krause, 21Shares presently has $1 billion in AUM. “While our AUM is down now owing to the market conditions, our inflows are at an all-time high,” he added. Added him:<\/p>\n\n\n\n

\u201cInvestors are holding strong and still creating inflows for the long game. Investors who believe in crypto are \u2018buying-the-dip\u201d \u2014 and particularly via ETPs as a transparent, convenient and safe way to enter the asset class.\u201d<\/p><\/blockquote>\n\n\n\n

If the length of prior cycles repeats itself, the present bear market might continue for another 250 days starting in July 2022, according to Grayscale Investments.<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the collapse of the cryptocurrency markets this year, the Swiss cryptocurrency ETP company 21Shares has witnessed new crypto inflows reach new all-time highs YTD. With its new risk-adjusted cryptocurrency investment products, 21Shares is attempting to match the benchmarks of the S&P Dow Jones Indices despite the over 50% decline in the cryptocurrency markets this […]<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[892],"class_list":["post-32218","post","type-post","status-publish","format-standard","hentry","category-news","tag-21shares"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/32218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=32218"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/32218\/revisions"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=32218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=32218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=32218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}