Newly launched 21Shares Risk Controlled ETPs are following the similar pattern as S&P.
Swiss cryptocurrency investment firm, 21Shares went on to launch new financial products. Bitcoin (BTC) and Ethereum (ETH) ETPs—are two exchange traded products from 21Shares will provide their investors exposure to these popular and top cryptocurrencies. The investment firm took utmost care while designing the products, considering the volatility and fluctuations in the market.
21Shares is known to be the largest crypto exchange traded products issuer. The recently launched ETPs named ‘21Shares S&P Risk Controlled Bitcoin Index ETP’ and ‘21Shares S&P Risk Controlled Ethereum Index ETP’—listed on SIX Swiss Exchange. Given the crypto winter lately, investment firms have gone all to help investors dealing with the situation and designed financial products to let them through the bear market.
The firm announced the launch on Wednesday and ETPs started trading on exchange from 20th July, 2022. ETPs were given the trade tickers—SPBTC and SPETH, 21Shares added. Both the financial products are designed to solely aim for a 40% volatility level.
They have planned to achieve this target with rebalancing of assets or allocation or more assets in exchange of dollars, at the time of volatility would be on surge. Financial products aspiring to walk on the similar path to S&P indexes. Benchmarks of S&P indexes manage to control the involved risk as they also adjust the underlying index’s exposure and allocate to USD.
Arthur Krause—ETP Director at 21Share—highlighted that the target of 40% looks towards volatility instead of investment performance. Krause also outlined that the historical volatility of equities in the US with large-cap remains 20%. However, this remains 70% and 80% for bitcoin (BTC) and ethereum (ETH) respectively, he added.
According to Krause, recent financial products of the investment firm—21Shares S&P Risk Control Index ETPs—incorporated cryptocurrency exposure, which is known for its volatility, with fiat currency, with negligible volatility. This could be counted as an attempt of the firm to reach their overall target of achieving moderate volatility.
Source: https://www.thecoinrepublic.com/2022/07/22/two-new-risk-controlled-btc-and-eth-etps-from-21shares/