21Shares AG has announced that the firm has added staking to the 21Shares Cosmos ETP (ATOM) and the 21Shares Avalanche ETP (AVAX) and will be renaming them as follows:
Ticker ISIN Current Product Name New Product Name
ATOM CH1145930991 21Shares Cosmos ETP 21Shares Cosmos Staking ETP
AVAX CH1135202088 21Shares Avalanche ETP 21Shares Avalanche Staking ETP
The firm writes that staking involves locking specific crypto-assets to support the operation and security of a blockchain network, earning rewards in the process. 21Shares writes that by integrating staking rewards into its ETPs, investors enjoy a potential additional income stream without having to keep their assets locked, enhancing overall returns while maintaining exposure to the respective underlying assets.
According to Coinbase (as of 16 July 2024), the average staking yield for Cosmos is around 12.74 per cent and the average staking yield for Avalanche is 4.47 per cent.
“Since 2018, 21Shares has pioneered the innovation of crypto asset ETPs globally,” says Hany Rashwan, Co-Founder and CEO of 21Shares. “Providing investors the opportunity to generate potential additional income through staking underscores the firm’s commitment to staying at the forefront of product innovation.”
In January 2022, 21Shares listed the world’s first crypto ETP for the Cosmos blockchain with the launch of ATOM. 21Shares writes that ATOM, which is 100 per cent physically backed, delivers a regulated way to tap into Cosmos’ network growth, which fosters cross-chain interoperability and allows siloed blockchains to communicate with each other—an essential component to the growth of decentralised finance (DeFi).
Launched in November 2021, AVAX, also 100 per cent physically-backed, tracks the performance of Avax tokens. Designed to increase transaction speeds and enable real-world asset tokenisation, 21Shares writes that Avalanche is well-suited to support and scale the traditional financial industry. AVAX offers a simple and regulated way for investors to gain exposure to the network’s growth, the firm says.
