21Shares launches ETF for Lido DAO’s liquid staking platform.
21Shares, which provides crypto exchange-traded products (ETP), has introduced a way for traditional investors to gain exposure to Lido DAO, the largest participant in the liquid-staking ecosystem, through single asset exposure.
According to the issue-specific summary of the Switzerland-based company, “21Shares Lido DAO ETP (LIDO) is a non-interest bearing, open-ended security. Each series of the product is linked to an index or specific underlying asset Lido DAO.”
The products are available to the general public in 22 European Union countries, including France, Germany, and Portugal, and are traded on several exchanges such as SIX Swiss Exchange, BX Exchange, and Stuttgart Exchange. The ETP currently has $100,000 in assets under management (AUM), compared to 21Shares’ total AUM of more than $1.1 billion.
21Shares has classified this product as “high risk” in several categories, including market risk, regulatory risk, secondary market risk, the risk of an extraordinary event, and the risk of a quick change in the value of a crypto asset that could drop to zero.
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“We have classified this product as class 7 out of 7, which is the highest risk class,” said 21Shares in a document with the product’s key information. “This rates the potential losses from future performance at a very high level, and poor market conditions are very likely to impact the capacity of the fund to pay you.”
Liquid staking allows users to maintain liquidity while locking their cryptocurrency to earn rewards for securing the blockchain network. Lido, the dominant liquid staking player, has more than $13 billion ETH staked, commanding a 76% market share of liquid staking derivatives on Ethereum, according to data from blockchain analytics firm Nansen.
See also: 21Shares Closes 6 Crypto Exchange-Traded Products
Edited by Sheldon Reback.
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