Switzerland-based 21Shares, recognized as one of Europe’s largest issuers of cryptocurrency exchange-traded products (ETPs), has announced the launch of the first fund linked to dYdX, a decentralized exchange (DEX) that specializes in perpetual futures. This development marks a significant milestone in the growing intersection of decentralized finance (DeFi) and traditional investment frameworks.
In a recently shared announcement, Cointelegraph reports that dYdX has achieved an impressive cumulative trading volume of over $1.4 trillion, while offering more than 230 perpetual markets. Supporting the physicality of the new product is the dYdX Treasury subDAO, which utilizes a decentralized finance treasury management system known as kpk.
With this initiative, 21Shares aims to create a smoother entry point for institutional investors into the DeFi landscape. “This launch represents a milestone moment in DeFi adoption, allowing institutions to access dYdX through the ETP wrapper – utilizing the same infrastructure already in use for traditional financial assets,” stated Mandy Chiu, 21Shares’ head of financial product development. This positioning is seen as a bridge between the established financial systems and the burgeoning DeFi sector.
In addition to the launch, shortly after, staking will be introduced, allowing investors to lock up tokens in exchange for rewards. As explained by a spokesperson from 21Shares, “DYDX staking and an auto-compounding feature will be introduced, generating rewards that auto-compound into DYDX token buybacks.”
The announcement also detailed dYdX’s ambitious expansion roadmap. This includes implementing Telegram-based trading, a forthcoming spot market that will start with Solana, and offering perpetual contracts linked to real-world assets such as equities and indexes. There will also be a fee discount program for stakers of dYdX and broader deposit options that encompass stablecoins and fiat currencies.
The dYdX ETP is set to be launched on Euronext Paris and Euronext Amsterdam under the ticker symbol DYDX.
This launch comes amid a broader trend, as both traditional and centralized cryptocurrency exchanges ramp up their offerings in the crypto derivatives market. Recently, Kraken launched its CFTC-regulated derivatives arm following a substantial acquisition, enhancing its position in the derivatives landscape. Cboe, a prominent global exchange operator, has also announced plans to introduce “continuous futures” for major cryptocurrencies like Bitcoin and Ether in November, pending regulatory review.
In a competitive response, Bitget, based in Singapore, reported a staggering $750 billion in derivatives volume for August, achieving a cumulative total of $11.5 trillion since its inception. This exchange placed among the top three global venues for Bitcoin and Ether open interest during that period.
With the market dynamics continually shifting, the overall open interest in crypto derivatives currently stands at approximately $3.96 billion for futures and $984 billion for perpetual contracts, as reported by CoinMarketCap. This ongoing expansion and innovation in crypto derivatives highlight the increasing institutional acceptance and integration of digital assets into the broader financial ecosystem.
