Swiss-based 21Shares has launched the first exchange-traded product (ETP) tracking dYdX, a decentralized derivatives platform, giving institutional investors an easy way to access DeFi perpetual futures.
According to the press release, the ETP will be listed on Euronext Paris and Amsterdam under the ticker DYDX. Mandy Chiu, head of financial product development at 21Shares, said,
“This launch represents a milestone moment in DeFi adoption, allowing institutions to access dYdX through the ETP wrapper – utilizing the same infrastructure already in use for traditional financial assets.”
The product is backed by the dYdX Treasury subDAO, operated by kpk, a decentralized finance treasury manager. dYdX has handled more than $1.4 trillion in trading and offers over 230 perpetual markets.
The ETP allows institutions to gain exposure to these markets without interacting directly with on-chain operations. Marcelo Ruiz de Olano, CEO of kpk, added, “With the 21Shares dYdX ETP, dYdX is accessible via ticker and trade, making the market as simple to reach as any listed security.”
Staking will be added soon, allowing investors to lock up DYDX tokens and earn rewards. The auto-compounding feature will convert staking rewards into DYDX buybacks.
Notably, The ETP comes as dYdX expands its services with Telegram-based trading later this month, a spot market starting with Solana, and perpetual contracts linked to real-world assets like equities and indexes. The protocol will also offer a fee discount program for stakers and broader deposit options including fiat and stablecoins.
The launch occurs amid a boom in crypto derivatives. For instance, Kraken recently launched a CFTC-regulated derivatives platform, and Cboe plans to launch continuous futures for Bitcoin and Ether with ten-year expirations.
Meanwhile, Bitget reported $750 billion in derivatives trading in August, bringing its total to $11.5 trillion. Open interest in crypto derivatives currently stands at $3.96 billion in futures and $984 billion in perpetuals.
Crypto derivatives first appeared in 2017 with CME and Cboe Bitcoin futures. While Cboe exited the market in 2019, CME grew to dominate U.S. trading.
As of now, Global derivatives markets have exceeded $100 trillion, though DeFi derivatives still make up less than 1%.
That said, the 21Shares dYdX ETP provides a simple, regulated way for investors to take part in the growing DeFi derivatives market.
Also Read: Hong Kong Eases Crypto Rules to Boost Stablecoin Banking
