21Shares Lists a Physically Backed DYDX ETP on Euronext Paris and Amsterdam

21Shares has launched a new exchange-traded product (ETP) tied to the DYDX governance token, now listed on both Euronext Paris and Amsterdam. The product offers institutional investors exposure to the dYdX ecosystem without the complexities of direct token custody.

Listing and Product Details

The tracks the price of DYDX and carries a 2.5% annual management fee. It’s fully physically backed, meaning each share is supported by actual DYDX tokens—simplifying custody for investors. This launch expands 21Shares’ European crypto ETP suite to 48 products, reflecting growing institutional interest in crypto derivatives. The firm now manages nearly $11 billion in crypto ETP assets globally.

Underlying Asset: DYDX and the dYdX Protocol

DYDX is the native governance token of the dYdX protocol, a leading decentralized platform for perpetual trading. Token holders can participate in protocol decisions and benefit from ecosystem incentives, such as trading rewards and fee discounts. The platform is known for its deep liquidity and user-friendly interface.

Impact for Institutional Investors

This ETP lowers the entry barrier for traditional investors seeking exposure to DeFi governance tokens. It simplifies compliance, reduces operational overhead, and mitigates self-custody risks. However, investors should still consider factors like management fees, the liquidity of DYDX markets, and the token’s inherent volatility before investing.

Regulatory Considerations

While Europe is making progress with crypto regulation—such as MiCA—global uncertainty remains. Blending regulated ETPs with decentralized protocols introduces challenges around auditing, custody, and cross-border taxation. Regulatory alignment will be key for the long-term success of such products.