Leading European crypto exchange-traded product (ETP) provider, 21Shares, headquartered in Switzerland, has unveiled a novel fund linked to dYdX. dYdX is a decentralized exchange (DEX) renowned for its specialization in perpetual futures trading.
As detailed in a press release, dYdX boasts a cumulative trading volume surpassing $1.4 trillion, featuring over 230 perpetual markets. The dYdX Treasury subDAO supports this physically backed product through kpk, a decentralized finance (DeFi) treasury management solution.
21Shares emphasizes that by offering dYdX within a regulated exchange-traded product, they are facilitating easier access for institutional investors to engage with the platform.
Mandy Chiu, Head of Financial Product Development at 21Shares, stated, “This launch marks a pivotal point in the broader adoption of DeFi, providing institutions with a pathway to invest in dYdX via the ETP structure. This leverages established infrastructure already familiar to traditional financial asset trading.”
A representative from 21Shares confirmed that staking functionality, which involves locking tokens to enhance blockchain network security and earn rewards, will be implemented soon. “We plan to integrate DYDX staking along with an automated compounding feature, which will automatically reinvest earned rewards into DYDX token buybacks.”
The announcement also highlighted dYdX’s future development plans. These include launching Telegram-based trading later in the month, introducing a spot market (starting with Solana), providing perpetual contracts tied to real-world assets like stock indices and individual stocks, establishing a fee discount program for DYDX stakers, and expanding deposit options to include fiat currencies and various stablecoins.
The 21Shares dYdX ETP will be listed on Euronext Paris and Euronext Amsterdam under the stock ticker DYDX.
Related: Hyperliquid token gains institutional access with new 21Shares ETP
Heightened Demand for Crypto Derivatives Seen Across Platforms
The introduction of the dYdX ETP comes at a time when both traditional and centralized cryptocurrency exchanges are actively expanding their offerings in the crypto derivatives space. Crypto derivatives enable traders to speculate on price movements in digital assets without needing to directly own the underlying assets.
In the United States, Kraken launched its derivatives platform, regulated by the CFTC, in July, following its acquisition of futures brokerage NinjaTrader for $1.5 billion. The derivatives exchange offers access to CME-listed crypto futures contracts.
Earlier this week, Cboe, a major global exchange operator, announced its intentions to introduce “continuous futures” for both Bitcoin and Ether, scheduled for launch on November 10, pending regulatory approval. These contracts will be listed on the Cboe Futures Exchange and are designed as single, long-term instruments with a 10-year expiration.
Cboe explained that these contracts are structured similarly to perpetual futures, a prevalent model in offshore markets that has previously lacked availability within a US-regulated environment. The exchange positions them as providing both institutional and retail traders with long-term cryptocurrency exposure through a centrally cleared and intermediated framework.
Concurrently, Bitget, a Singapore-based digital asset exchange, disclosed a derivatives trading volume of $750 billion for the month of August. This brings its total cumulative volume since its launch to $11.5 trillion.
During the month, Bitget ranked among the top three global platforms for Bitcoin and Ether open interest in futures contracts, with BTC futures surpassing $10 billion and ETH open interest trending above $6 billion.
Regulated crypto derivatives first emerged in December 2017, when CME and Cboe launched cash-settled Bitcoin futures. Although Cboe withdrew from the market in 2019 due to limited trading activity, CME’s contracts experienced substantial growth and now dominate US crypto derivatives trading.
According to data from CoinMarketCap, the total open interest in crypto derivatives, representing the total value of active futures and perpetual contracts held by traders, currently amounts to approximately $3.96 billion in futures and $984 billion in perpetuals.
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