21Shares Debuts dYdX-Linked ETP to Enhance Institutional Crypto Derivatives Access
21Shares, a leading Swiss issuer of crypto exchange-traded products (ETPs), has unveiled the first fund linked to dYdX, a decentralized exchange (DEX) specializing in perpetual futures contracts. This marks a significant step toward integrating decentralized finance (DeFi) derivatives into regulated financial markets.
dYdX has recorded over $1.4 trillion in cumulative trading volume and offers more than 230 perpetual markets. The product is supported by the dYdX Treasury subDAO through a DeFi treasury manager named kpk, ensuring the ETP is physically backed.
By packaging dYdX exposure into a regulated ETP, 21Shares seeks to lower barriers for institutional investors to access decentralized perpetual futures. Mandy Chiu, head of financial product development at 21Shares, emphasized that this launch represents a key milestone for DeFi adoption, enabling institutions to utilize familiar infrastructure used for traditional assets.
A 21Shares spokesperson indicated that staking features will be introduced shortly after the product launch, including DYDX token staking and an auto-compounding mechanism that reinvests rewards into DYDX token buybacks.
The dYdX roadmap includes upcoming features such as Telegram-based trading, a spot market initially supporting Solana, perpetual contracts linked to real-world assets like equities and indexes, and a fee discount program for stakers. Broader deposit options encompassing stablecoins and fiat currencies are also planned.
The 21Shares dYdX ETP will be listed on Euronext Paris and Amsterdam under the ticker symbol DYDX.
Growing Institutional Interest in Crypto Derivatives
This launch occurs amid heightened institutional engagement with crypto derivatives. In the United States, Kraken launched a CFTC-regulated derivatives platform in July following the acquisition of futures broker NinjaTrader. The platform provides access to CME-listed crypto futures.
Additionally, Cboe, a major exchange operator, announced plans to introduce “continuous futures” for Bitcoin and Ether, pending regulatory approval. These contracts are designed as long-dated, single products with 10-year expirations and aim to offer perpetual-style futures exposure within a regulated US framework.
Singapore-based exchange Bitget reported $750 billion in derivatives volume in August, reaching $11.5 trillion cumulatively. It ranks among the top global venues for Bitcoin and Ether futures open interest, with BTC futures exceeding $10 billion and ETH open interest above $6 billion.
Since the introduction of the first regulated crypto futures by Cboe and CME in 2017, the market has evolved significantly. While Cboe exited the market in 2019 due to low volume, CME’s contracts have become dominant in the US. Current open interest stands at approximately $3.96 billion for futures and $984 billion for perpetual contracts (CoinMarketCap data).
FinOracleAI — Market View
The launch of the 21Shares dYdX ETP is a positive development for institutional adoption of DeFi-based crypto derivatives. By providing exposure to a leading decentralized perpetual futures platform through a regulated product, 21Shares reduces compliance and custody barriers for institutional investors. The planned introduction of staking and auto-compounding features may further enhance investor incentives.
Risks include regulatory scrutiny of DeFi-linked products and market volatility inherent to crypto derivatives. Market participants should monitor the ETP’s initial uptake on Euronext and regulatory developments surrounding crypto derivatives in major jurisdictions.
Impact: positive
