Crypto News: 21Shares Launches First dYdX ETP as Institutions Eye DeFi Derivatives

Key Takeaways

21Shares debuts the first exchange-traded product (ETP) tracking dYdX (DYDX) on Euronext Paris and Amsterdam.

The product offers institutional access to DeFi derivatives, with staking and auto-compounding to follow.

Launch aligns with rising global demand for crypto derivatives, highlighted by Cboe, Kraken, and Bitget expansions.

First ETP for DeFi Perpetuals Protocol

Swiss-based 21Shares, one of Europe’s largest crypto ETP issuers, has launched the first fund tied to dYdX’s native token (DYDX), offering institutional investors exposure to one of DeFi’s most active derivatives platforms.

dYdX has processed more than $1.4 trillion in cumulative trading volume, listing over 230 perpetual markets. Backed by the dYdX Treasury subDAO and managed through a DeFi treasury structure, the physically backed ETP creates a regulated gateway for institutions to access decentralized perpetuals.

Mandy Chiu, head of financial product development at 21Shares, called the move a “milestone moment in DeFi adoption,” stressing that the ETP leverages the same regulated infrastructure already used for traditional assets.

Staking and Expansion Roadmap

21Shares confirmed staking will be added shortly after launch, with rewards auto-compounding into DYDX token buybacks.

dYdX’s broader roadmap includes:

Telegram-based trading rollout this month.

A spot market starting with Solana (SOL).

Perpetual contracts tied to real-world assets (equities, indexes).

Fee discounts for stakers and expanded deposit options spanning stablecoins and fiat.

Institutional Appetite for Crypto Derivatives Grows

The launch comes as both traditional and crypto-native exchanges ramp up derivatives offerings:

Kraken launched its CFTC-regulated derivatives arm in July via a $1.5B acquisition of NinjaTrader.

Cboe will debut 10-year Bitcoin and Ether “continuous futures” on Nov. 10, pending regulatory approval — modeled after perpetual futures popular in offshore markets.

Bitget reported $750B in August derivatives volume, bringing cumulative trading to $11.5T and ranking among the top three exchanges for BTC and ETH open interest.

Crypto derivatives remain one of the industry’s biggest markets, with open interest at $3.96B in futures and $984B in perpetuals, according to CoinMarketCap.