21Shares, a major provider of cryptocurrency exchange products, or ETPs, has launched the world’s first ETP Polkadot (DOT).
The new product, DOT ETP, will be listed on the SIX Swiss Exchange on February 4, 2021, as announced by 21Shares on Tuesday.
The new ETP came shortly after Polkadot added to its flagship ETP 21Shares Crypto Basket ETP (HODL) on January 29. By tracking five major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), HODL has removed Bitcoin Cash (BCH), and Polkadot is now the second largest component after Bitcoin.
According to HODL ETP data from MVIS Indicators, Polkadot currently accounts for around 27% of the product, and Bitcoin accounts for around 50% of ETP.
A spokesperson for 21Shares told Cointelegraph that the company is not making decisions to add or remove a specific asset from a HODL ETP. The spokesperson stated that these decisions were made by MV Index Solutions. “As an issuer, we cannot decide what to add and what to remove […]. They have a committee that decides which ingredients have been added, increased, reduced, or removed altogether.”
According to the announcement, the addition of Polkadot to 21shares Crypto Basket ETP makes it the “perfect moment to add an extra simple ETP resource to an already large set of encrypted ETPs” offered by 21shares.
Hany Rashwan, CEO of 21Shares confirmed that the company remains committed to the demand of institutional investors. “When investors acquire their first bitcoins for the first time through our ETPs, it is a natural move to invest in other cryptocurrencies,” Rashwan said. He added that the company plans to add two or three ETP programs over the next three months:
“We are leveraging trusted partners to provide liquidity, and as institutional demand continues, we are launching DOT ETP to provide investors with a safe, orderly and easy way to access exciting new blockchain technology. Over the next three months, we plan to add 2-3 innovative ETP programs.”
Polkadot is a next-generation blockchain protocol that connects several specialized blockchains to a single network. In mid-January 2021, the Polkadot token, DOT, made headlines and overtook XRP as the fourth largest cryptocurrency. At the time of writing, the DOT has been trading at $ 16.82, up roughly 5% in the past 24 hours and nearly 82% in the last 30 days, according to data from CoinGecko.