21Shares expands Crypto Winter Suite with S&P Risk Controlled Bitcoin and Ethereum Index ETPs
21Shares has announced the listing of two new ETPs on SIX Swiss Exchange, to offer investors exposure to the largest cryptocurrencies – bitcoin and Ethereum – while targeting less volatility.
These two ETPs are the latest products in 21Shares' Crypto Winter Suite – a set of products designed to help investors weather the bear market, the firm says.
The 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC) and 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) are designed to provide exposure to their namesake cryptocurrency while targeting a volatility level of 40 per cent. With cryptocurrencies, including Bitcoin and Ethereum, subject to high levels of volatility, 21Shares' newest Index ETPs are designed to soften that volatility by dynamically rebalancing – allocating more assets to USD when Bitcoin or Ethereum volatility rises or vice versa, the firm says. The products achieve this by seeking to replicate S&P Dow Jones Indices’ benchmarks that control risk by adjusting the exposure to the underlying index and dynamically allocating to US dollars.
“Data from our research team shows that adding Bitcoin or Ethereum exposure to a traditional investment portfolio can significantly enhance overall risk-adjusted performance,” says Arthur Krause, Director of ETP Product at 21Shares. “These newest ETPs based on S&P Dow Jones Indices world-class indices allow investors to realize the benefits of these innovative crypto exposures while controlling for volatility. These ETPs are the next step in our Crypto Winter Suite, providing investors with entry to the asset class in a risk-controlled manner.”
“Over the last two years, S&P Dow Jones Indices have been developing cryptocurrency indexing capabilities to help promote more transparency and facilitate access to this emerging technology-driven asset class,” says Sharon Liebowitz, Senior Director, Innovation at S&P Dow Jones Indices. “The S&P Bitcoin Dynamic Rebalancing Risk Control 40% Index and the S&P Ethereum Dynamic Rebalancing Risk Control 40% Index are the latest examples of innovative indices which aim to help measure and address volatility associated with the underlying cryptocurrencies.”
Both the 21Shares S&P Risk Controlled Bitcoin Index ETP and 21Shares S&P Risk Controlled Ethereum Index ETP are listed today on SIX Swiss exchange, and available to investors in USD.