21Shares launches ETP for Bitcoin L2 network Stacks

Leading crypto exchange-traded product (ETP) issuer 21Shares has launched a product offering exposure to Bitcoin (BTC) layer2 (L2) network Stacks (STX).

According to an April 4 statement, the 21Shares Stacks Staking ETP  is listed on the BX Swiss Exchange under the ticker ASTX.

21Shares described the product as “the world’s first ETP offering exposure to Stacks.”

Arthur Krause, director of ETP product at 21Shares, said:

“ASTX provides a unique opportunity for investors, as there are currently no other investment products providing exposure to Stacks on the market.”

Stacks is a Bitcoin L2 network with a separate ledger to store data outside Bitcoin L1. The protocol allows developers to build decentralized applications (dApps) similar to those on other smart contract-enabled blockchains like Ethereum.

The protocol is one of the best-performing digital assets, rallying by more than 330% in 2023, according to CryptoSlate’s data.

Earlier in the year, crypto investment fund North Rock Digital’s founder Hal Press said his fund had taken a long-term position in STX.

Meanwhile, this is not the first altcoin ETP 21Shares would be launching. The ETP issuer delisted six crypto ETPs, including its Terra ETP, due to low investor demand.

The news did not impact STX’s price performance; the asset is down 2.3% to trade at $0.87 as of press time, according to CryptoSlate’s data.

Crypto ETPs performing strongly in 2023

Data from trackinsight showed that most crypto-related ETPs have soared by more than 60% in 2023. This is largely due to the improved performance of the industry that has seen Bitcoin and other cryptocurrencies recover from their previous lows.

Investors usually invest in ETPs as an indirect way of gaining exposure to a digital asset without holding it directly.

Several investment firms have issued different crypto ETPs for investors looking to invest in the crypto space.

For context, WisdomTree launched ETPs for Cardano, Solana, and Polkadot last year in Europe despite the bear market condition. At the time, the investment firm said it wanted to provide institutional investors access to diverse cryptocurrencies.

Besides that, some of the largest financial institutions — BlackRock, Fidelity Investment — have launched their own crypto-related offerings in their bid to attract investors.