21Shares has made a significant move in the cryptocurrency space with the launch of a new exchange-traded product (ETP) that offers investors exposure to Crypto.com’s Cronos token (CRO). This innovative product is now available on Euronext’s Paris and Amsterdam exchanges, providing a regulated avenue for investing in an emerging blockchain ecosystem.
In announcing this development on May 6, 21Shares emphasized the utility of the Cronos blockchain, which connects with both the Ethereum and Cosmos ecosystems. The chain is engineered to support decentralized finance (DeFi), non-fungible tokens (NFTs), and various Web3 applications. This alignment with progressive technologies establishes Cronos as a substantial player in the blockchain landscape.
The newly launched ETP aims to facilitate portfolio integration of CRO for investors, allowing them to avoid the complexities of managing digital wallets or navigating cryptocurrency exchanges. “By launching a Cronos ETP, we are offering investors regulated exposure to a blockchain ecosystem that is driving real-world adoption,” stated Mandy Chiu, 21Shares’ head of financial products development.
As part of its financial growth metrics, the CRO token boasts a market capitalization of approximately $2.3 billion and a fully diluted value nearing $8.7 billion, as per recent data. Furthermore, Cronos currently has a total value locked (TVL) of around $400 million, showcasing its effectiveness in attracting liquidity within the DeFi space.
The ecosystem includes notable projects, such as Crypto.com’s liquid Ether staking token, Crypto.com Staked ETH, which holds a TVL of nearly $64 million, further enhancing the platform’s credibility and potential for investment.
Macro Trends in Crypto ETFs
The launch of the Cronos ETP comes amidst a burgeoning interest in cryptocurrency exchange-traded funds (ETFs). Recent filings include VanEck’s plan to list an ETF in the U.S. that would be tied to BNB, the native token of the BNB Chain associated with the Binance platform. In the U.S., 21Shares has also been proactive, proposing ETFs focused on various cryptocurrencies such as Dogecoin, Polkadot, and Solana.
Amid these transitions, asset managers are eagerly waiting for the U.S. Securities and Exchange Commission (SEC) to approve an expansive selection of over 70 cryptocurrency ETFs. This surge in filings is fueled by shifts in regulatory sentiment, notably since the SEC’s increasingly positive stance towards cryptocurrency under the new presidential administration.
As the cryptocurrency sector continues to evolve and expand, the introduction of products like the Cronos ETP is a testament to the growing acceptance and integration of digital assets in mainstream financial markets.
