21Shares Launches ETP for Bitcoin L2 Network Stacks
Leading crypto exchange-traded product (ETP) issuer 21Shares has launched a product offering exposure to Bitcoin (BTC) layer2 (L2) Network Stacks (STX).
According to an April 4 statement, 21Shares Stacks Staking ETP is listed on the BX Swiss Exchange under the ticker ASTX.
21Shares described the product as “the world’s first ETP to offer exposure to stacks.”
Arthur Krause, Director of ETP Product at 21Shares, said:
“ASTX provides a unique opportunity for investors, as there are currently no other investment products that provide exposure to Stacks on the market.”
Stacks is a Bitcoin L2 network with a separate ledger to store data outside of Bitcoin L1. The protocol allows developers to build decentralized applications (dApps) similar to other smart contract-enabled blockchains such as Ethereum.
The protocol is one of the best performing digital assets, increasing by more than 330% in 2023, according to CryptoSlate’s data.
Earlier this year, crypto investment fund North Rock Digital’s founder Hal Press said his fund had taken a long-term position in STX.
Meanwhile, this is not the first altcoin ETP 21Shares will launch. The ETP issuer removed six crypto ETPs, including the Terra ETP, due to low investor demand.
The news did not affect STX’s price performance; the asset is down 2.3% to trade at $0.87 at press time, according to CryptoSlate’s data.
Crypto ETPs performed strongly in 2023
Data from trackinsight showed that most crypto-related ETPs have risen by more than 60% in 2023. This is largely due to the improved performance of the industry which has seen Bitcoin and other cryptocurrencies recover from their previous downturns.
Investors typically invest in ETPs as an indirect way to gain exposure to a digital asset without directly holding it.
Several investment firms have issued various crypto ETPs for investors looking to invest in the crypto space.
For context, WisdomTree launched ETPs for Cardano, Solana and Polkadot last year in Europe despite the bear market. At the time, the investment firm said it wanted to give institutional investors access to various cryptocurrencies.
Apart from that, some of the biggest financial institutions – BlackRock, Fidelity Investment – have launched their own crypto-related offerings in their attempt to attract investors.
Disclaimer: Our authors’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Do your own due diligence before taking any action related to the content of this article. Finally, CryptoSlate takes no responsibility if you lose money trading cryptocurrencies.
