21 Stocks and ETPs of Ethereum and Bitcoin to control the risk of S&P


As the stock market crash erased $ 2 trillion in value from all cryptocurrencies in just a few months, 21Shares has launched new risk-adjusted cryptocurrency investment products based on performance metrics from the S&P Dow Jones Index.

In particular, two new exchange-traded products (ETPs) aim for 40% volatility by rebalancing assets against the US dollar.

Risk-adjusted investment products for cryptocurrencies

Both exchange-traded products offer investors access to major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) and are traded on the Vicariate SIX exchange.

In particular, the SIX Swiss Exchange, which is part of the subsidiary of the SIX Group and operates under the supervision of the Financial Market Supervisory Authority of the Vicariate (FINMA), is the third largest European stock exchange and the main capital market for the securities of the Vicariate. .

By trading with the symbols SPBTC and SPETH, ETPs combine exposure to a volatile cryptocurrency with liquidity to achieve the overall goal of moderate volatility.

This follows on from the company’s commitment to launch the S&P Cryptocurrency Broad Digital Market (BDM) Index, which provides insight into the performance of the cryptocurrency market and comprises over 240 etons.

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The index is part of an extension of S&P’s recently launched digital asset benchmark series, the S&P Digital Market Indices. Furthermore, the company pointed out that SPBTC and SPETH are examples of indices that aim to address the volatility associated with the underlying cryptocurrencies.

corporate realignment

As new risk-adjusted cryptocurrency investment products track the performance of the S&P Dow Jones indices, they are aiming for 40% volatility.

This is achieved by rebalancing or allocating multiple USD assets in times of volatility. In this context, S&P performance metrics control risk by adjusting the underlying index exposure and dynamic allocation in US dollars.

The S&P Risk Parity Index series as a whole provides a rule-based measure of the performance of risk parity strategies. These indices build risk-equivalent portfolios using futures contracts to represent multiple asset classes and the risk-return characteristics of the funds offered in the value-at-risk space.

Arthur Krause, director of ETPs at 21Shares, said the 40% target was for volatility rather than investment performance, adding that US large-cap stocks had 20% historical annual volatility. For Bitcoin, this figure is 70%, while Ethereum’s volatility is 80%.

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Nut based products

Although cryptocurrency inflows have reached new all-time highs, recently reaching $ 100 billion in new assets under management (AUM) year over year, we are still in an overall bear market and inflows are lower than in the past. This is demonstrated by CoinShares’ latest weekly report which showed digital asset investment products totaled $ 12 million in inflows over the past week, while investment product volume remained very low at $ 1 billion for the week. .

Last month, 21Shares announced the launch of a series of new products called Crypto Winter Suite, targeting retail and institutional investors in countries including France, Germany, Switzerland, Austria, Sweden, Bas and Australia.

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