21Shares AG, an ETP issuer based in Switzerland, has announced the launch of two new ETPs. Beginning on May 12th, the 21Shares Layer 1 Infrastructure ETP (symbol:LAY1) will begin trading on SIX Swiss. This ETP provides investors with focused exposure to blockchains, which are the technical backbone of the DeFi world. On the other hand, BX Swiss Exchange plans to list (symbol: DEFII) on May 18, 2022, as well. It aims to provide investors with a tailored exposure to the blockchain-based DeFI industry. It also keeps tabs on the performance of a custom index built by Vinter.
21Shares is a global financial services provider that has its headquarters in Zug, Switzerland, in addition to offices in Zurich and New York City. With this platform, investors may purchase, trade and short cryptocurrency using their bank and brokerage accounts. In 2018, it pioneered the first listing of a cryptocurrency index on the SIX Swiss Exchange. Also, 21Shares is the first company in Europe to provide an exchange-traded product (ETP) based on the DeFi index.
“With our new thematic crypto ETPs, we’re providing investors with two broadly diversified investment vehicles at the ideal time to participate in this revolution,” stated Ophelia Snyder, Co-founder and President of 21Shares.
Since DeFi is based on Layer 1 blockchains and decentralized applications (“dApps”), the customized index for DEFII ETP tracks the price performance of both. Each of these components makes up half of the overall index. In addition, the assets in each category are sorted by market capitalization and rebalancing happens after every three months.
Similar to DEFII, LAY1 uses a custom-tailored index provided by index supplier Vinter. The top five Layer 1 blockchains form the index. The maximum weighting for any blockchain is 30%. Every three months, the portfolios undergo rebalancing.