21Shares launches two new ETPs in Switzerland

21Shares today announced the listing of two new ETPs on SIX Swiss Exchange.

The new ETP indices on Bitcoin and Ethereum from 21Shares

21Shares, the world’s largest issuer of ETPs (Exchange Traded Products), announced the launch of two new products linked to Bitcoin and Ethereum

Today we're launching two new products in our #Crypto Winter Suite, listed on @sixgroup:

– @21Shares S&P Risk Controlled Bitcoin Index ETP $SPBTC
– @21Shares S&P Risk Controlled Ethereum Index ETP $SPETH

Learn more: https://t.co/bCLxhpEYo1
#BTC #ETH #Bitcoin #Ethereum pic.twitter.com/T9AQPfu6vf

— 21Shares (@21Shares) July 20, 2022

These last two products are part of 21Shares’ Crypto Winter Suite, a set of products designed to help investors weather the bear market. In detail, the two products are built specifically to try to decrease the great volatility in the markets, especially at this time of great turbulence.

The 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) were listed on the SIX Swiss Exchange with expense ratios of 2.50% each. 

Specifically, according to what are the disclosure notes of the two new ETPs, they are linked to the S&P Bitcoin Dynamic Rebalancing Risk Control 40% index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% index. These two indices target 40% annualized controlled volatility through dynamic allocation between the underlying cryptocurrency and US dollars.

The products are made in such a way that when volatility increases, the amount invested in the reference cryptocurrency automatically decreases and the amount invested in USD increases.

The advantages of investing in these new financial instruments

This issue of volatility has indeed become a major concern for investors in these first six months of the year. Suffice it to say that at the end of June 2022, BTC and ETH had a five-year annualized volatility of 92.2% and 121.8%, respectively.

Arthur Krause, Director of ETP Product at 21Shares, said about the launch of the new products: 

“Data from our research team shows that adding bitcoin or ether exposure to a traditional investment portfolio can significantly enhance overall risk-adjusted performance. These newest ETPs based on S&P Dow Jones Indices’ world-class indices allow investors to realize the benefits of these innovative crypto exposures while controlling for volatility”.

According to rumors, the 21Shares company, in addition to low-cost, risk-controlled long crypto exposures, will soon introduce bear market-oriented products for short-term tactical allocations.