21Shares Launches Lido-Focused ETP Amid Liquid Staking Surge
As the market capitalization of liquid staking governance tokens continues to surge, 21Shares has launched an Exchange Traded Product (ETP) that enables investors to gain exposure to the largest liquid staking provider. The 21Shares Lido DAO ETP, with underlying asset LDO, is the first of its kind and is listed on the BX Swiss exchange. The company announced on Monday that the product will soon be available on Euronext Paris.
Liquid Staking and the Shapella Upgrade
The surge in the market capitalization of liquid staking governance tokens can be traced back to Ethereum’s Shapella upgrade. The upgrade introduced a new consensus mechanism that enabled users to stake their ETH to participate in the network’s proof-of-stake consensus. This led to the creation of several liquid staking providers, including Lido, which allows users to stake their ETH and receive stETH, a liquid representation of their staked ETH.
Liquid staking allows users to earn rewards on their staked tokens while still being able to use them for other purposes, such as trading or providing liquidity on decentralized exchanges. It eliminates the need for users to lock up their tokens for extended periods, as is the case with traditional staking.
The 21Shares Lido DAO ETP
The launch of the 21Shares Lido DAO ETP provides investors with an easier way to gain exposure to the growth of liquid staking. The product is designed to track the performance of Lido DAO, the largest liquid staking provider with a market cap of $1.6 billion, accounting for about half the market cap of all liquid staking governance tokens.
The ETP is listed on the BX Swiss exchange and will soon be available on Euronext Paris. It is the first product of its kind and provides investors with the opportunity to invest in Lido DAO without having to purchase the underlying asset, LDO.
The Future of Liquid Staking
The launch of the 21Shares Lido DAO ETP is just the latest development in the rapidly growing field of liquid staking. The ability to earn rewards on staked tokens while still being able to use them for other purposes is a game-changer for the staking industry.
As more users discover the benefits of liquid staking, the market capitalization of liquid staking governance tokens is likely to continue to rise. The 21Shares Lido DAO ETP provides investors with an exciting opportunity to gain exposure to this emerging market, and it will be interesting to see how the product performs in the coming months.
In conclusion, the launch of the 21Shares Lido DAO ETP is a significant development for the liquid staking industry. It provides investors with an easier way to gain exposure to the largest liquid staking provider and is the first product of its kind. As the market capitalization of liquid staking governance tokens continues to grow, the 21Shares Lido DAO ETP provides an exciting opportunity for investors to participate in this emerging market.
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