Digital asset ETP specialist 21Shares has launched the world’s first crypto ETP providing direct exposure to LDO, the native token underpinning the Lido DAO protocol.
Arthur Krause, Director of ETP Product at 21Shares.
The 21Shares Lido DAO ETP has been listed on BX Swiss in US dollars (Ticker: LIDO SW) and on Euronext Paris in euros (LIDO FP).
Lido DAO (Lido) is a market-leading liquid staking solution for various Proof-of-Stake (PoS) blockchains, including Ethereum, Polygon, and Solana.
Lido’s mission is to make staking simple, secure, and decentralized, enabling users to stake their assets and receive an equal amount of staked tokens in return, which accrue staking rewards. These staked tokens can then also be traded on the secondary market and used within DeFi applications, a process known as “liquid staking.”
Liquid staking allows users to access the benefits of staking without facing lock-up periods or high minimum staking amounts that can place staking out-of-reach for many everyday investors. Lido is the largest liquid staking provider, responsible for $13.3 billion out of the total $19.5bn value locked across the space as a whole.
With a total market capitalization of $1.7 billion, LDO is currently the 31st largest crypto asset worldwide.
The 21Shares Lido DAO ETP offers institutional investors easy access to the LDO 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 LDO which is stored using institutional-grade cold-storage custody solutions provided by Copper and Bank Frick.
The ETP comes with an expense ratio of 2.50%.
Arthur Krause, Director of ETP Product at 21Shares, said: “The 21Shares Lido DAO ETP was launched to offer investors exposure to liquid staking, one of the fastest-growing segments in the digital asset space. Lido DAO’s position as a pioneer and market leader makes this an ideal entry point for investors looking to participate in the growth of this important sector.”
The ETP represents 21Shares’ third launch of the year, another indication that the most recent crypto winter is continuing to thaw. In April, 21Shares debuted the 21Shares Stacks Staking ETP (ASTX BS), the world’s first crypto ETP providing direct exposure to STX, the native token underpinning the Stacks protocol, while earlier in January, the firm unveiled the 21Shares Staking Basket Index ETP (STAKE SW), the world’s first crypto basket ETP providing directly backed exposure to the largest proof-of-stake (PoS) cryptocurrencies while fully staking its underlying tokens.