21Shares, the European crypto ETP provider, has launched the first exchange-traded product (ETP) on the dYdX token (DYDX). The product is specifically aimed at institutional investors, offering regulated access to DeFi derivatives.
With the new dYdX ETP, investors can gain direct exposure to the leading DeFi derivatives protocol via regulated exchanges such as Euronext Paris and Amsterdam. The ETP is physically backed and will include future features such as DYDX staking and auto-compounding, allowing rewards to be automatically reinvested. The launch highlights the growing demand for crypto derivatives in the institutional market.
Access to defi derivatives for institutions
dYdX is a leading protocol for perpetual futures, with a cumulative trading volume of over USD 1.4 trillion and more than 230 markets. With the ETP from 21Shares, investors can now access this segment through the same infrastructure used for traditional financial instruments. According to Mandy Chiu, Head of Product Development at 21Shares, this is an important step for DeFi adoption and opens up new opportunities for institutional investors.
21Shares plans to add features such as DYDX staking and auto-compounding to the ETP in the future. This will allow investors to automatically reinvest their rewards into DYDX tokens, enhancing yield potential and further increasing the product’s attractiveness for institutional investors.
Market trend and significance
The introduction of the dYdX ETP comes at a time when other platforms such as Kraken, Cboe, and Bitget are also expanding their crypto derivatives offerings. This demonstrates the rising acceptance and demand for regulated crypto derivatives in the institutional space and highlights the increasing integration of DeFi into traditional financial markets.
With the launch of the dYdX ETP, 21Shares is positioning itself as a leading provider of regulated crypto products in Europe. Listing on Euronext Paris and Amsterdam enhances the visibility of DeFi derivatives among institutional investors and signals the growing professionalization of the European crypto market.
