21Shares has unveiled a new exchange-traded product (ETP) linked to dYdX’s native token, DYDX, marking a significant step in extending regulated access to one of the largest decentralized derivatives protocols in the market. This product, supported by DYDX tokens held with custodians, commenced trading this week. The initiative received backing from the dYdX Treasury subDAO, operated by kpk.
As a leader in the crypto space, 21Shares is now the largest issuer of crypto ETPs in Europe, boasting a total of 48 products. The launch of the dYdX ETP builds on the firm’s previous DeFi-focused ETPs, such as those for Aave and Uniswap, that were introduced in 2022. Mandy Chiu, Head of Financial Product Development at 21Shares, emphasized that dYdX was selected for its unique focus on decentralized derivatives trading, particularly in perpetual futures, which has traditionally been dominated by centralized exchanges.
Chiu noted that the dYdX ETP offers institutional-grade access to a pioneering decentralized exchange, which is crucial for expanding institutional investment in the space, as traditional barriers such as custody and compliance have historically limited participation. The liquidity and efficient pricing of the product are supported by market maker Flow Traders, ensuring daily creations and redemptions that keep the ETP aligned with its net asset value.
According to Chiu, the suite of ETPs offered by 21Shares, including those for DYDX, Uniswap, and Aave, represents complementary layers of decentralized finance (DeFi) infrastructure. This design allows investors to selectively allocate resources across these building blocks or to take a holistic approach.
Charles d’Haussy, CEO of the dYdX Foundation, commented on the new product, declaring it a means for institutions to leverage DYDX’s innovative technology, which redefines the vast $28 trillion crypto derivatives market. He clarified that while the ETP itself does not facilitate direct activity on the protocol, it provides exposure to the token, similar to the architecture seen in Ethereum ETFs.
The dYdX chain remains fully sovereign and decentralized, with community governance and 50 independent validators, distinguishing it within the rapidly evolving DeFi ecosystem. This launch is anticipated to further enhance liquidity and participation in decentralized derivatives trading, underscoring the growing maturity and acceptance of DeFi products in mainstream financial markets.
