21Shares, a Switzerland-based crypto exchange-traded product (ETP) issuer, has launched a new vehicle focused on the SAND token to give investors exposure to The Sandbox’s metaverse and gaming platform.
ETPs are a popular way for institutional investors to bet on cryptocurrencies and blockchain projects. Banks including Goldman Sachs (GS), ICAP, JPMorgan (JPM)and UBS (UBS) have all bought ETPs for an increasing number of clients.
The Sandbox platform, built on Ethereum, is a decentralized virtual world where participants can monetize assets and gaming experiences. Through the ETP, investors will be able to capitalize on the growth of The Sandbox in a secure way, according to the press release.
In February, 21Shares launched its Decentraland ETP involving its MANA token. Hany Rashwan, CEO and co-founder of 21Shares, told CoinDesk in an email that for this ETP it chose The Sandbox over other metaverse platforms because of investor demands for more access to opportunities beyond Bitcoin and Ethereum.
“The metaverse is one of the most pre-eminent themes within crypto at the moment, with [SAND] in particular showing strong growth to become the best performing blue-chip metaverse token,” said Rashwan.
The launch marks 21Shares’ 30th cryptocurrency ETP offered and will be cross-listed on Euronext Paris and Amsterdam. 21Shares has close to $3 billion in Assets under Management (AUM) and has over 130 listings, including the world’s only ETP tracking Binance, according to the press release.
The launch comes after SAND, the native token of The Sandbox platform, has dropped 40% in the past three months. Other metaverse-related tokens including MANA and Axie Infinity's AXS are also down for the year to date, significantly underperforming bitcoin (BTC).
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