Switzerland-based cryptocurrency company 21Shares is banking on proof-of-stake (PoS) coins by releasing a new crypto exchange-traded product (ETP) devoted to staking.On Jan. 18, the company launched the 21Shares Staking Basket Index ETP, a crypto staking index created to track approximately 10 PoS cryptocurrencies. The ETP instantly begins trading on the local stock market BX Swiss under the ticker STAKE.At launch

, 21Shares’ STAKE ETP tracks 6 digital properties, including BNB (BNB), Cardano (ADA), Cosmos (ATOM), Polkadot ( DOT), Solana(SOL)and Tezos(XTZ). The index will rebalance semi-annually in March and September, following market shifts.With the addition of STAKE, 21Shares and its parent firm, 21. co, now supply 47 crypto ETP

items across 12 exchanges in nine nations. The ETPs aim to provide financiers with a safe and protected method to acquire crypto direct exposure by offering an option to direct crypto investment.”STAKE provides value for financiers by utilizing the ETP’s possessions to create a passive yield that might provide

additional returns by contributing to the network’s security,”said Arthur Krause, director of ETP product at 21. co.The launch of STAKE ETP comes a couple of years after 21Shares started experimenting with staking ETPs. In 2019, 21Shares debuted the 21Shares Tezos Staking ETP (AXTZ) and introduced the 21Shares Solana Staking ETP(ASOL )in June 2021. Both products experienced a significant decrease in 2022, in line with the bear market. Nevertheless, the ETPs have carried out well in the first weeks of 2023, with year-to-date efficiency surging 38%for AXTZ and 78%for ASOL.Related: Ethereum creator states he hopes Solana gets a’opportunity to thrive’Krause stressed that possessions like Solana– which is extensively connected to the collapsed FTX exchange– have actually not had any impact on 21Shares’products, mentioning: “Solana– like practically all other crypto properties– skilled substantial price decreases in 2022 however suffered no basic problems that wouldprevent its inclusion in the index.” STAKE’s launch follows some significant global regulators expressed concerns about cryptocurrency staking. In September 2022, the United States Securities and Exchange Commission chairman, Gary Gensler, argued that crypto staking looks”very similar”to providing, referring to huge failures in the crypto financing market amidst the bearishness of 2022. Thailand’s Securities and Exchange Commission also banned crypto companies from providing staking and lending services in September 2022.

“To be clear, the 21Shares Staking Basket ETP does not take part in any financing whatsoever,”Krause highlighted. He included that staking is a crypto-native technique allowing investors to promise properties to support the process of validating blockchain deals, whereas loaning is a conventional financial method where lenders are compensated for the risk that possessions they provide may not be returned.