Crypto ETPs – Efficient investments in an innovative asset class

21Shares offers solutions to investors who are interested in moving into a new type of investment. Our motto is: “Crypto made easy”.

Crypto, blockchain and related currencies are now being recognized as a significant trend in the world of finance. Digital assets have caught a strong tailwind on the financial markets recently. The volumes of crypto currencies being traded are growing along with investor interest. In 2020, Switzerland was one of the first countries in the world to put the necessary regulatory conditions in place for the fast-growing crypto sector. This enables fully-regulated financial services to be provided. In times of falling stock exchange indices and falling crypto values, that is a core prerequisite for customers.

From Bernhard Wenger Head of Northern Europe, 21Shares

Why should you invest in crypto and related assets? The first thing to note is that there is now a broad range of crypto currencies in existence. A crypto currency is a means of exchange that is digital, encoded and decentralized. The best known are still Bitcoin (BTC) and Ethereum (ETH). Bitcoin was the very first blockchain; its value has now risen exponentially, and it has become widely accepted as a means of payment. The recent drops in the value of crypto currencies do not alter these fundamental facts.

Ethereum may be very similar to Bitcoin, but its potential uses go beyond the purely financial aspects and include the provision of services on your own blockchain. Ethereum offers integrated programming languages which can be used, for example, to create so-called smart contracts, which can be used for many purposes. Unlike the US dollar or the euro, there is no central authority that manages and maintains the value of a crypto currency. Instead, these tasks are spread widely over the users of a crypto currency across the Internet. That is why many crypto currencies are not simply a different kind of currency but, because of the services provided, they are more like a kind of share certificate in future profits from products. This factor also needs to be kept in mind when looking at the drops in the prices of most crypto currencies, because at the same time the stock exchanges have also fallen off recently.

Long-term outlooks for investors, despite short-term market corrections

Because crypto currencies such as Bitcoin, Ethereum and so on are noted for their growth, more and more traditional investors are taking an interest in these investments. However, unlike in the case of classic currencies, shares or funds, for many people, this first step is haunted by a fear of the unknown. Reducing exactly this type of fear is what we at 21Shares see as our most important mission. That is why we make reports and insights from our generally well-regarded research department available to anyone who is interested, free of charge. Our experts can clearly describe the likely outcomes that may be attractive to longer-term investors, despite the short-term market corrections in many crypto currencies.

In line with our motto, “Crypto made easy”, we endeavor to offer potential investors solutions that give them easy access to this new class of assets. Our vision is for the whole world to have equal access and equal rights in the world of crypto. We are working hard to achieve this.

What is our approach? We want to achieve this primarily by issuing exchange-traded products (ETPs) that create diversified investment options. This allows us to offer interested investors a solution that suits their needs. A crypto ETP offers many benefits, especially for those new to crypto. The financial instrument can be traded on exchanges such as SIX. ETPs represent a step forward for a crypto currency, a token, or an index, and their costs are very modest, because they only involve transaction and custodian fees.

Given our already very broad and diverse product range we are in a position to meet the demands of all types of customer with a very competent team at my side.

The same applies to the ETPs from 21Shares. These are the very first to be approved for listing on SIX and are traded there. We make every effort to cover a wide range of requirements with our products. Currently we are offering 23 single asset ETPs, which can be used to invest in a variety of crypto currencies. Or perhaps you would like to diversify your risk and invest in an index ETP. 21Shares now has nine of these available. Especially whenever aspects like risk management and diversification are important, we need to offer a variety of different structured ETPs to provide bespoke access to the right investment for different types of investors and strategies. Completely in line with our philosophy: “Crypto made easy.”

Biography

Bernhard Wenger is Head of Northern Europe at 21Shares. He is tasked with growing 21Shares’ business in Northern Europe and the DACH region. Hailing from Austria, he was previously managing director of State Street Global Advisors in Switzerland. Wenger can draw on over 20 years of experience in banking and asset management. He has held several senior positions at ETF Securities in London, including responsibility for European sales. Earlier names found on this ETP expert’s CV include Morgan Stanley, HSBC and BNP Paribas.