Institutions Gain Access to Crypto Derivatives Market with 21Shares' New DYDX Fund Launch
The Swiss company 21Shares has made a significant move in the cryptocurrency news by launching a new Exchange-Traded Product (ETP) tied to dYdX's native token, DYDX. This development marks a significant step forward in extending regulated access to one of the largest decentralized derivatives protocols, dYdX, empowering institutions to participate in the decentralized derivatives market. The new ETP, backed by DYDX tokens held with custodians, began trading this week. It comes as a natural extension of 21Shares' news-focused ETPs, including Aave, ChainLink, and Uniswap products launched in 2022. As the largest issuer of crypto news in Europe, with 48 crypto-ETPs currently available across multiple exchanges, 21Shares is no stranger to the crypto news market. Crypto news allow investors to buy and sell exposure to digital assets on stock exchanges, and the new ETP from 21Shares reflects the continued evolution of DeFi as decentralized derivatives mature and can be packaged into exchange-traded products. The dYdX chain, which remains fully sovereign and decentralized with community governance and 50 independent validators, operates on its own dedicated chain, similar to the Google News ETF which offers exposure to the protocol token ETH or, for DYDX, the native token DYDX. The dYdX chain has seen significant activity, settling more than $1.4 trillion in cumulative trading volume across 230 perpetual markets. Its focus on decentralized derivatives trading, particularly perpetual futures, made it a natural choice for the new ETP. Charles d'Haussy, CEO of the dYdX Foundation, stated that the new product empowers institutions to harness DYD's pioneering technology which redefines the $28 trillion crypto derivatives markets. The dYdX Treasury subDAO, through its operator kpk, supports the new ETP. Liquidity and efficient pricing for the new ETP will be ensured through market maker Flow Traders, with daily creations and redemptions to keep the product aligned with net asset value. Recent launches by 21Shares include ETPs tracking Cronos, Aptos, XDC Network, and Sui, further expanding their news portfolio. Together, DYDX, Uniswap, and Aave represent complementary layers of DeFi infrastructure. The 21Shares ETP suite gives investors the ability to selectively or holistically allocate to these building blocks of DeFi infrastructure. In Europe, crypto news are usually issued as notes backed one-to-one by the underlying tokens, rather than pooled funds. The new ETP comes at a time when institutional participation in dYdX has been limited by custody, compliance, and operational barriers. By providing a regulated avenue for institutions to access decentralized perpetual futures markets in Europe, the new ETP from 21Shares is poised to open up a new era in the decentralized derivatives market.
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