21Shares’s Latest Crypto Fund Offers Yield on USD Amid Rampant Inflation
The company’s latest fund to issue its 21Shares cryptocurrency exchange product is designed to distribute returns to investors amid volatile inflation and interest rates.
21Shares USD Yield ETP (USDY) provides yields in the mortgage-backed dollar at 5%. The product makes a profit by receiving US dollars and lending cryptocurrency to partners with a minimum 110% mortgage in Bitcoin and Ethereum.
USDY — an exchange-traded product (ETP) — is available on the SIX Swiss Exchange on Wednesday and is open to investors in US dollars, with a fee of 30 basis points.
“We see this ETP as a useful tool for investors to navigate market volatility and stay invested through complex market conditions — like today’s,” said 21Shares President Ophelia Snyder. “While investors grapple with inflation, fluctuating interest rates, and a range of economic pressures, this product is a first-of-its-kind way to gain maximum exposure to risk-adjusted yield and preserve liquidity in their portfolios.”
21Shares has total assets of more than $2.5 billion, has launched a wide range of digital investment products this year, and has many ongoing projects. 21Shares said it is preparing to launch 20 to 30 ETPs later this year.
The company is trying to strengthen its position in the world. “Our goal is to build bridges between cryptocurrencies and the world of institutional investment while increasing access to some of the world’s largest blockchain and cryptocurrency ecosystems,” Snyder said.
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