Swiss asset manager 21Shares has launched a new exchange-traded product (ETP) that tracks the native token of decentralized derivatives platform dYdX, expanding regulated access to one of DeFi’s largest perpetual-futures ecosystems.
The 21Shares dYdX ETP is backed one-to-one by DYDX tokens held with custodians and began trading this week with support from the dYdX Treasury subDAO via operator kpk. In Europe, crypto ETPs commonly take the form of notes secured by the underlying tokens rather than pooled funds, making them a familiar vehicle for traditional investors.
dYdX has processed more than $1.4 trillion in cumulative trading volume across roughly 230 perpetual markets, but institutional participation has historically been constrained by custody and compliance hurdles. Mandy Chiu, Head of Financial Product Development at 21Shares, said the product offers institutional-grade access and will rely on market maker Flow Traders plus daily creations and redemptions to keep prices aligned with net asset value.
This launch follows 21Shares’ earlier DeFi ETPs — including Uniswap and Aave — and signals a broader push to package DeFi building blocks into exchange-traded instruments investors can buy on regulated venues. Charles d’Haussy, CEO of the dYdX Foundation, emphasized the chain’s sovereignty and community governance, noting the ETP provides token exposure without facilitating activity on the protocol itself.
Why it matters: Packaging DYDX into an exchange-traded note lowers operational and custody barriers for institutions that want exposure to decentralized derivatives but are wary of on-chain operational complexity. It also highlights how DeFi primitives are being repackaged for traditional markets.
Risk considerations: ETPs offer tradable exposure to tokens but do not remove volatility, custodial risk, or regulatory uncertainty. Holding an ETP is not the same as participating on-chain and does not confer governance or operational rights.
Source: Decrypt. Read the original coverage for full details.