21Shares launched the 21Shares DYDX exchange-traded product (ETP) on Thursday. The fund is a regulated and physically backed investment product that aims to provide institutional investors with secure and compliant exposure to the DYDX.
The crypto company revealed that the dYdX Treasury subDAO supported the launch through its operator, kpk. 21Shares noted that dYdX had settled over $1.4 trillion in cumulative trading volume, saying it’s the most operationally mature decentralized derivatives protocol. The proof-of-stake blockchain network also serves more than 230 perpetual markets globally.
DYDX ETP Bridges Traditional and Decentralized Finance
The private company acknowledged that the DYDX ETP bridges traditional and decentralized finance. The product also offers institutional allocators a regulated, trusted pathway into the rapidly growing on-chain derivatives market.
The crypto ETP provider disclosed that it led the product design, regulatory approvals, and exchange listing to ensure seamless integration into institutional trading environments. The firm said it leverages its track record as one of Europe’s leading ETP issuers to deliver professional investor access to DYDX. 21Shares also believes its momentum aligns with accelerating inflows into U.S. spot Bitcoin ETFs such as the Grayscale Bitcoin ETF (GBTC) to address growing institutional adoption.
“The dYdX ETP empowers institutions to harness DYDX’s pioneering technology, which redefines the $28 trillion crypto derivatives markets.”
–Charles d’Haussy, CEO of dYdX Foundation.
Head of financial product development at 21Shares, Mandy Chiu, said the ETP is an addition to the company’s product lineup, which provides investors with institutional-grade access to one of the first DEXs to offer perpetual future contracts.
She added that the launch represents a milestone in DeFi adoption, which she believes will allow institutions to access dYdX through the ETP wrapper. According to the firm’s official, the initiative will utilize the same infrastructure already used for traditional financial assets.
CEO and co-founder at KPK, Marcelo Ruiz, argued that promising DeFi tokens often go under the radar for investors unfamiliar with decentralized finance. He noted that the 21Shares dYdX fund makes the dYdX blockchain network accessible via ticker and trade. According to him, the initiative makes the market easily reachable as any other listed security.
Ruiz also acknowledged that the launch helps dYdX align real protocol revenues with tokenholder value by contributing to the Treasury SubDAO. He added that the fund will avoid the hurdles often experienced with on-chain operations by giving institutional investors a clear entry into one of the most dynamic DeFi protocols.
On-chain data showed that the DeFi derivatives market represents only 1% of the global derivatives market, with more than $100 trillion in notional value. 21Shares believes it launched the ETP at a crucial moment that aligns with dYdX’s high-velocity roadmap.
The ETP provider revealed that the fund will provide institutions with a timely and regulated on-ramp as it expands into Telegram trading this month. The initiative aims to provide seamless cross-platform execution and a growth incentive program.
The ETP also came as 21Shares plans to launch spot trading on its platform. The firm said the initiative aims to provide global market access and will launch first with Solana integration.
21Shares plans to introduce perpetuals for real-world assets (RWAs), including equities, indexes, and pre-IPO shares on-chain. The firm plans to establish a stake-for-reduced-fees feature, which offers customizable fee tiers rewarding long-term DYDX stakers. The company said it will expand its deposit options to include USDT, Solana, and fiat on-ramps.
Crypto exchanges expand their derivatives offerings
Traditional and centralized crypto exchanges are also expanding their derivatives offerings to allow traders to speculate on the price of virtual assets without directly owning them. In July, Kraken launched its derivatives arm to provide access to CME-listed crypto futures. The crypto exchange also acquired futures broker platform NinjaTrader for roughly $1.5 billion.
Cboe also announced plans to establish continuous futures for BTC and ETH on November 10. The initiative is pending regulatory review, and the contracts will be listed on the Cboe Futures Exchange with 10-year expirations.
