21Shares AG plans to launch a cryptocurrency exchange-traded product (ETP) based on Polkadot. The DOT ETP is expected to become available on the Swiss stock exchange (SIX Exchange) on February 4. Polkadot has previously been included in the 21Shares HODL ETP basket, making it the second largest constituent after Bitcoin.
As 21Shares CEO Hany Rashwan said, the decision is due to "unprecedented demand from institutional investors wanting exposure to crypto assets:"
"After investors purchase their first Bitcoins through our ETPs, there is a natural transition to invest in other crypto assets. The DOT ETP to give investors a safe, regulated and easy way to obtain exposure to this exciting new blockchain technology."
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Rashwan also said 21Shares has plans to add 2-3 "innovative ETPs" and expand listings on European exchanges over the next three months.
According to 21Shares AG, the securities in the DOT ETP will be fully backed by DOT tokens. Company representatives said:
"Though the popularity of the DOT token has increased substantially over the past months, it is still not easy for non-technical users to buy and hold and interact with it. The DOT ETP lowers the barriers to entry for newcomers to the crypto asset industry and allows a much wider audience to be able to participate in its development."