Societe Generale, one of Europe’s leading banks, has announced a partnership with 21Shares aimed at enhancing liquidity for crypto exchange-traded products.
Societe Generale and 21Shares Partnership
Societe Generale will support trading activity across several of 21Shares’ ETPs. These products provide professional investors exposure to assets like Bitcoin and Ethereum without direct ownership. Under the agreement, the bank will act as a market maker for 21Shares’ products, including Bitcoin ETPs ABTC and CBTC, as well as Ethereum ETPs AETH and CETH. This will improve liquidity and pricing for institutional trading.
Advantages of Crypto ETPs for Investors
Crypto ETPs are becoming a popular tool for large investors for several reasons: - Regulation simplifies integration into existing investment portfolios. - Strict financial standards reduce risks associated with hacking, theft, or asset mismanagement. - Ease of access without the need for wallet management or blockchain handling. - ETPs provide exposure to major cryptocurrencies like Bitcoin and Ethereum through trusted financial platforms. - A broad range of crypto options helps investors manage risks more effectively.
Forecasts and Future of Crypto ETP Market
21Shares noted that total assets under management in global crypto ETPs reached $180 billion. If market conditions improve, this figure could rise significantly. A 38% increase in digital asset valuations could push total global AUM past the $250 billion mark. The partnership with Societe Generale fits into a broader shift toward regulated crypto investment products, making these instruments more attractive to long-term investors.
The partnership between Societe Generale and 21Shares marks an important step in the development of the crypto ETP market in Europe. With improved infrastructure and liquidity, these investment tools are attracting increasing attention from institutional investors.
