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]

Core Viewpoint - The launch of the 21Shares dYdX ETP provides European investors with access to a leading decentralized derivatives platform, enhancing 21Shares' product offerings in the crypto asset space [1][2]. Company Overview - 21Shares AG is one of the largest issuers of crypto exchange traded products (ETPs) globally, with a current lineup of 48 crypto-asset ETPs and total assets under management (AUM) of $11 billion [2][5]. - The company aims to bridge traditional finance and decentralized finance, having launched the world's first physically-backed crypto ETP in 2018 [5]. Product Details - The 21Shares dYdX ETP (ticker: DYDX) is 100% physically-backed and tracks the performance of the dYdX platform, which is known for offering perpetual future contracts [3][7]. - The dYdX platform has maintained 15,000 weekly active traders and generated $7.7 billion in trading volume in July, with a projected total addressable market of $4 trillion by year-end [3][4]. - dYdX has distributed over $50 million in real USDC to its users, creating a sustainable value model that enhances its growth potential [3]. Market Position - The dYdX platform has facilitated over $1.5 trillion in cumulative trading volume, accounting for more than 20% of the $7.2 trillion transacted across decentralized perpetuals to date [4]. - The introduction of the dYdX ETP is seen as a significant milestone for institutions looking to engage with innovative crypto derivatives markets [4].