Coinbase Custody to Hold Assets Backing 21Sharesâ€™ Bitcoin ETP
Crypto asset manager 21Shares will use Coinbase Custody to secure the Bitcoin backing its ETP launch tomorrow.
21Shares, an asset manager specialized in cryptocurrencies, has chosen the custody service offered by crypto exchange Coinbase for its Bitcoin (BTC) exchange-traded product.
According to a July 1 Coinbase announcement, 21Shares will use Coinbase Custody to secure the Bitcoin backing the ETP launching tomorrow. The derivative will launch on Deutsche BÃ¶rseâ€™s Xetra â€” Germanyâ€™s second-largest stock exchange.
The product is purportedly he first physically-backed Bitcoin ETP in Europe.
Cryptocurrency derivatives see explosive growth
Cryptocurrency derivatives are seeing new developments increasingly often. In late-February, 21Sharesâ€™s also launched an inverse Bitcoin ETP called Short Bitcoin on Xetra. In January, the same ETP also began trading on leading Swiss exchange SIX.
At the time, OKEx CEO Jay Hao said that financial derivatives â€œplay an irreplaceable role in hedging risks and maximizing profit.â€�
Still, the space has recently seen its share of controversy when Qiao Wang, an investor, analyst and head of product at a crypto market data firm raised criticism about how the Grayscale Bitcoin Trust is set up. According to him, Grayscale Bitcoin Trustâ€™s system could allow for it to trade at a discount compared to the net asset value of the fundâ€™s assets.
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