Digital asset ETP specialist 21Shares has launched the world’s first crypto ETP providing direct exposure to STX, the native token underpinning the Stacks protocol.
Stacks enables smart contracts to be run on the Bitcoin blockchain.
The 21Shares Stacks Staking ETP (ASTX BS) has been listed on BX Swiss in Swiss francs.
It comes with an expense ratio of 2.50%.
Stacks is a crypto asset protocol that unlocks the full potential of Bitcoin as an infrastructure for smart contracts and decentralized applications, expanding the use case of the world’s largest and most well-known crypto asset.
STX is the native cryptocurrency of the Stacks network. It’s used to fuel smart contracts for Bitcoin, to reward miners on the open Stacks network, and enables holders to earn bitcoin by ‘Stacking’.
With a total market capitalization of $950 million, STX is currently the 50th largest crypto asset worldwide.
The 21Shares Stacks Staking ETP offers institutional investors easy access to the STX token through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.
It uses full direct, ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in STX which is stored using institutional-grade cold-storage custody solutions provided by Coinbase and Bank Frick.
The ETP also earns rewards associated with ‘staking’ the underlying STX tokens. Proof-of-stake networks, such as Stacks, put their underlying crypto assets to work in verifying and securing transactions on the blockchain. Investors who choose to take part in this process ‘stake’ their crypto asset holdings and earn rewards for doing so.
The staked coins do not move from the secure custodian where they are stored, and the ETP remains 100% physically backed at all times.
Arthur Krause, Director of ETP Product at 21.co, parent company of 21Shares, said: “ASTX provides a unique opportunity for investors, as there are currently no other investment products providing exposure to Stacks on the market. At 21Shares, we pride ourselves on continually bringing first-to-market products to investors in a safe and regulated manner. Our ETPs allow investors to access innovative and promising crypto assets through trusted investment vehicles.”