Similar to shares of publicly traded companies, investors can purchase and sell 21Shares ETPs through their traditional banks and brokerage firms with access to SIX Swiss Exchange. By using identifiers such as a ticker symbol, ISIN, WKN or Valor, your broker can place a multitude of order types including; limit orders, marker orders, and stop orders. Our ETPs can be traded throughout normal SIX exchange trading hours.
No, investors need to purchase our products through various channels including broker-dealers, investment advisor, or other financial services firm.
What are the fees for 21Shares products?
ETPs accrue daily management fees (1.49% for ABTC, otherwise 2.5% per annum) in the value of the unit price, much like traditional managed funds. In addition, because our products are bought and sold just like shares, customary brokerage fees will apply. Note, these fees are charged by your broker with prices set by them.
How are 21Shares products structured?
21Shares ETPs are open-ended with no scheduled maturity date. Our products are physically replicated, meaning they are fully collateralized by the underlying assets they are designed to track with a 1:1 leverage. All funds used to create ETP shares (whether in-kind or in fiat currency) are converted into the underlying assets of the product. These assets are held in cold storage equal to 100% of the note’s value and are segregated in the event the issuer goes bankrupt.
What is the investment minimum?
The investment minimum of our products is the price of a single share on the secondary market, plus any brokerage fee that apply.
Am I eligible to invest in 21Shares products if I live outside of Switzerland?
21Shares ETPs can be purchased through any broker or financial institution with access to SIX Swiss.
What are the benefits of purchasing 21Shares products versus buying the underlying assets on a traditional Crypto exchange (i.e Binance, Coinbase, BitMEX)?
With the crypto market in its infant stages, a number of issues still exist when purchasing these assets that time and technology have yet to resolve. By offering the convenience of investing through your broker, we save investors the hassle of setting up wallets, dealing with the risks of getting hacked, transferring your funds to the wrong address, or losing your private keys.
Where can I find the amount of digital assets in collateral for each of 21Shares’s products?
You can find this information on the individual product pages in the Product/Index Distribution table.
What is 21Shares and why were the products previously under Amun?
As of March 2, 2020 we re-branded our exchange traded product (ETP) line to 21Shares. 21Shares is now a family of ETPs marketed and managed by Amun.
What is an ETP?
Exchange Traded Products (ETPs) are collateralized, non-interest paying debt securities designed to replicate the performance of an underlying asset. In the case of 21Shares’s ETPs, our products replicate the performance of the crypto asset (Bitcoin, Ethereum, Ripple, Bitcoin Cash) or the index it tracks (HODL5, BIT10, ABBA).
How does 21Shares price the underlying assets of its products?
21Shares prices the basket purely on a crypto basis. Each note that is issued under the program has a corresponding value of crypto attributed at the time of creation. These can be seen in the final terms for the series and any subsequent final terms for additional traches of the issuance program.
How does an ETP differ from an ETF?
Although ETPs are structured and operate very similarly to traditional Exchange Traded Funds (ETFs), the primary difference between the two is that ETPs are debt securities issued by a Special Purpose Vehicle (SPV) instead. Our products are not UCITS compliant; however, we ensure they are 100% collateralized to reduce the credit exposure for investors.
How is the market price of an ETP determined?
The market price of 21Shares’s products are approximately equal to the market value of the underlying assets held in collateral. Therefore, the price of 21Shares’s ETPs in the secondary market is close to the product’s Net Asset Value (NAV). Any divergence between the market price of an 21Shares ETP and the NAV of its underlying constituents would normally trigger arbitrage activities by market participants, thus moving the market price back towards NAV.
What is the difference between the NAV per unit and the market price?
The NAV per unit of an ETP denotes the dollar value of the underlying holdings expressed as a single unit value. As a result, this is considered the ‘fair value’ which is struck daily at the end of the day. On the other hand, the market price is the price at which the last trade of the Fund occurred.
Why does the market price of the ETP sometimes differ from the NAV?
The market price of our ETPs is driven by the supply and demand in the secondary markets. Depending on these market forces, the market price may be above (referred to as a ‘Premium) or below (referred to as a ‘Discount’) the product’s NAV.
How does 21Shares ensure the security of the underlying assets of the ETPs?
The digital assets are held in cold storage with industry-leading Custodians. We have a number of measures in place to ensure the security of the underlying assets. Such measures include: Cryptographic Security, Offline Protection, Multiple Private Keys, and Whitelisting of wallets.
Are 21Shares’s products collateralized? And if so, how much?
Our ETPs are collateralized debt obligations. 21Shares AG as the issuer is always required to maintain 100% collateralization of these products. This means that we are not lending the underlying or in any other way pledging those assets. They will remain solely for the benefit of investors.
How are iNAVs calculated?
iNAVs for our products are distributed and calculated by Solactive AG. This data is available through Bloomberg, Reuters, and IHS Markit.
How can I launch an ETP with 21Shares?
Our goal is to help others launch their own products. If you are interested in launching one, please reach out to [email protected] for more information on how 21Shares can help.