21Shares Launches DYDX Fund as Institutions Eye Crypto Derivatives Market

Core Insights - Swiss asset manager 21Shares has launched a new exchange-traded product (ETP) linked to dYdX's native token, DYDX, aimed at providing regulated access to a major decentralized derivatives protocol [1][2] - The new ETP allows investors to buy and sell exposure to digital assets on stock exchanges, with a focus on institutional-grade access to decentralized exchanges offering perpetual futures contracts [3][5] Group 1 - The dYdX ETP began trading this week, supported by the dYdX Treasury subDAO and operated by kpk, marking an extension of 21Shares' DeFi-focused product range [1][3] - dYdX has achieved over $1.4 trillion in cumulative trading volume across 230 perpetual markets, although institutional participation has faced challenges due to custody and compliance issues [2] - The product is designed to ensure liquidity and efficient pricing through market maker Flow Traders, with daily creations and redemptions to maintain alignment with net asset value [4] Group 2 - The ETP suite from 21Shares, including products for Aave, ChainLink, and Uniswap, aims to provide investors with the ability to allocate selectively or holistically to key components of DeFi infrastructure [4] - The introduction of the dYdX ETP reflects the ongoing evolution of DeFi, allowing decentralized derivatives to be packaged into transparent, exchange-traded products [5] - The CEO of the dYdX Foundation emphasized that the new product empowers institutions to leverage DYDX's technology, which is redefining the $28 trillion crypto derivatives market [5]