21Shares Delists Terra ETP, Terminates 5 Other Crypto ETPs Due to Low Investor Demand

21Shares is set to delist its Terra exchange-traded product (ETP) and pull the plug on five other cryptocurrency ETPs, citing a lack of investor interest.

The move comes as the firm looks to streamline its offerings and focus on more promising opportunities in the ever-evolving digital resources space.

Bloomberg reports that the affected ETPs will begin to close next month, despite having only been open for less than a year.

21-share ETPs suffer a blow when investors decline

The cumulative assets under control of the six ETP closings are less than $700,000.

21Shares USD Yield ETP (USDY), 21Shares Crypto Layer 1 ETP (LAY1), 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), 21Shares DeFi 10 Infrastructure ETP (DEFII) and 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) will be phased out after the trading day on 6 April.

The sixth product, 21Shares Terra Classic ETP (LUNA), will remain on the market until June 12.

After delisting, the termination process begins. The ETP’s assets are sold and the proceeds distributed to investors on a pro-rata basis, based on their holdings in the ETP. The timing and process of termination may vary depending on the specifics of the ETP and its underlying assets.

ETPs in a nutshell

An Exchange Traded Product (ETP) is a type of investment that can be bought and sold on an exchange, just as people would with a stock. ETPs can track a variety of different assets such as stocks, bonds, commodities or currencies.

When you buy an ETP, the buyer is essentially buying a share of a portfolio of assets, which are managed by a financial institution.

There are different types of ETPs, but a common type is an exchange-traded fund (ETF). ETFs are designed to track the performance of an index, such as the S&P 500.

When you buy an ETF, a person buys part of a fund that holds all the stocks in the index in the same proportions as the index. So if the index goes up, the value of the person’s ETF shares will also go up.

Terra Exchange Traded Fund (ETF) is a type of ETF that invests in companies focused on the development and use of blockchain technology for decentralized finance (DeFi) applications. The fund is named after the Terra stablecoin, which is designed to maintain a stable value against a target asset, such as the US dollar.

A series of collapses

Terra’s implosion, followed by Sam Bankman-Fried’s FTX crypto exchange, made for a trying year for digital assets.

Following the market crash, 21Shares, VanEck and Valor all froze new purchases and redemptions of their Terra ETPs.

Due to poor demand, ETC Group closed four ETPs, including the ETC Group Physical Uniswap ETP (USWA).

The ETP market is experiencing low sentiment as investors continue to grapple with market uncertainty and volatility.

ETPs, which track a variety of underlying assets such as stocks, bonds and commodities, have seen a decline in demand due to market conditions and economic uncertainty.

Crypto market cap reclaims the $1 trillion level after a shaky week. Chart: TradingView.com.

However, despite today’s low sentiment, ETPs continue to be a popular investment vehicle for many investors due to their liquidity and diversification benefits. It remains to be seen how the market will react in the coming months and whether investor sentiment towards ETPs will pick up again.

As a result, some companies have made the decision to cancel or terminate certain ETP offerings due to lack of investor interest or market conditions. This has led to a decrease in the total number of ETPs available to investors.

– Featured image from Coinspeaker