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Swiss cryptocurrency investment company 21Shares is launching two new exchange products (ETP) for Bitcoin and Ethereum with controlled risk S&P.
21Shares S&P Risk Controlled Bitcoin IndexETP and 21Shares S&P Risk Controlled Ethereum Index ETP will begin trading on the Swiss SIX exchange from July 20. The new products aim to reduce volatility by rebalancing assets against the US dollar. They will replicate S&P benchmarks, which control risk by adjusting exposure to the underlying index.
Both ETPs target volatility levels in40%. 21Shares ETP Product Director Arthur Krause stressed that the 40% target refers to volatility, not investment performance. US large-cap stocks have seen annual historical volatility of 20%. For Bitcoin this figure was 70%, and for Ethereum – 80%.
Chief Innovation Officer, S&P Dow JonesIndices Sharon Liebowitz emphasized that the company has been actively involved in cryptocurrency in recent years. Last year, S&P launched an index tracking the performance of the cryptocurrency market. Liebowitz noted that the new products are examples of indices aimed at eliminating the volatility associated with underlying cryptocurrencies.
Previously, 21Shares, together with Cathie Wood, submitted an application for a spot Bitcoin ETF after a previous rejection last year.
