21Shares has introduced a new exchange-traded product, which will enable European investors to invest in the preferred stock of Michael Saylor’s Strategy. The new exchange-traded product will provide investors with exposure to one of the first Bitcoin-backed corporate securities to be listed in Europe.
The announcement reflects the firm’s increasing efforts to broaden its regulated investment products. 21Shares Strategy Yield ETP will be listed on the Euronext Amsterdam exchange with the ticker symbol STRC NA. The listing will be live on Thursday, as the company announced on Wednesday, Feb 25.
Yield Linked to Strategy’s Preferred Stock
The exchange-traded product will be open to both retail and institutional investors. The exchange-traded product will provide a dividend yield to the investors based on Strategy’s Bitcoin treasury.
Strategy currently holds 717,722 BTC, which is valued around $47 billion. The dividend yield will be at a variable rate of 11.25% annually.
The exchange-traded product will provide investors with yield exposure to Strategy’s preferred stock. The exchange-traded product will be similar to Strategy’s preferred stock, also known as the Variable Rate Series A Perpetual “Stretch” Preferred Stock. The preferred stock has been structured to be a cash flow vehicle based on Strategy’s Bitcoin holdings.
21Shares explained that the product makes it easier for investors to access in Europe. They pointed out that investors do not need to acquire the preferred shares directly. This makes it easier for those who use the product and access the underlying corporate security.
Also Read: Strategy Reaches ‘Orange Century’ as Saylor Marks 100th Bitcoin Purchase
21Shares Expands Beyond Crypto-Only Offerings
Duncan Moir, the president of 21Shares, said that the product brings together the potential for yield with a traditional product structure.
He explained that the product enables investors to add income-focused investment within traditional systems of trading. This, therefore, makes it easier for investors to participate in the market, whether institutional or retail investors.
This is the firm’s first equity-linked product. However, the firm pointed out its intention to move beyond its traditional crypto-focused products. This is in line with its aim to increase access to digital asset-linked products.
21Shares manages $5.3 billion in assets under its 60 ETPs on 13 exchanges worldwide. The firm also launched the 21Shares Spot SUI ETF (TSUI) on the Nasdaq on Tuesday. This move is part of the firm’s ongoing expansion drive in global markets.
However, the firm pointed out its aim of providing a wider range of regulated investment products for European and U.S.-based investors focused on crypto-linked investment.
Also Read: Bitcoin ETFs Record $1.6 Billion Institutional Selling in Q4
