Crypto investors may have found the perfect product to help them navigate market downtrends as 21 Shares revealed plans to release an Ethereum-based exchange-traded product (ETP). The coming of the Ethereum ETP is timely as the industry battles another round of decline.
21 Shares Launch Ethereum-based ETP
In a recent announcement, the company revealed that it would be launching its “Crypto Winter Suites,” consisting of Short Ethereum ETP (SHETH) and Ethereum Core ETP (CETH).
According to the digital asset manager, the products came at the right time as the crypto market faces a likely prolonged bloodbath.
Furthermore, the SHETH ETP comes with a -1X gain on ETH in a day. As a short crypto product, its users can obtain it via borrowing Ether and selling it afterwards. This is similar to the 21 Shares Short Bitcoin ETP launched last July.
On the other hand, the CETH ETP will provide investment exposure to ETH at a friendly cost. Moreover, the product has a low expense rate of 21 basis points. This implies that it is 44 basis points lower than other physical-backed Ether ETPs currently on the market.
However, the CETH ETP can be used in collateralized lending to provide more low-cost Ethereum ETPs to the market. The lending process is designed to be processed through institution-approved providers. Meanwhile, all loans are insured and frequently monitored to protect investors.
21 Shares director of ETP products, Arthur Krause, noted that the company aims to provide investors with a confident venture into different asset classes with minimal risks.
Given the interest in Ethereum after the Merge, institutional players are demanding more of its products. Last week’s transition from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus protocol is a milestone for the Ethereum network.
The Merge takes place without a hitch. However, in the aftermath of the move, the price of Ethereum plummeted.
The Merge and ETHW’s Performance
Miners on the Ethereum network created a forked PoW protocol to show their disapproval of the PoS transition. The forked version will preserve the PoW on Ethereum’s blockchain for users of the old algorithm.
Following the Merge, the ETHW was issued to its users, with the asset suffering a massive setback.
However, the issuance of the forked token continues even after the Merge with many exchanges giving users some time to receive their ETHW. The asset received a boost after Binance completed the distribution of the ETHW and opened its deposits and withdrawals.
This triggers a surge in demand for the token. In the meantime, the rally has stopped, but the asset has been trending by 3.38% over the last 24 hours.
Meanwhile, the original Ethereum is momentarily in free fall. The price of ETH continues to fall after reaching $1,800.
It is worth noting that the Merge wiped out a significant part of ETH’s gains before the event.
There is a likelihood that the price of Ethereum may shoot up as post-merge stability reigns.