On Thursday, 21Shares launched the Strategy Yield ETP on Euronext Amsterdam. This gives Europe regulated access to Strategy’s preferred stock, which is mainly backed by Bitcoin.
21Shares, a company that makes crypto exchange-traded products (ETPs), has released an investment product that lets European investors buy a preferred stock from Michael Saylor’s Strategy, which is the biggest public holder of Bitcoin in the world.
On Thursday, Euronext Amsterdam will list the asset manager’s 21Shares Strategy Yield ETP under the ticker “STRC NA,” the business stated on Wednesday.
The ETP is open to both institutional and retail investors. It pays a dividend backed by Strategy’s Bitcoin (BTC) $67,333 treasury, which presently holds 717,722 BTC, worth over $47 billion. The ETP is one of the first structured, BTC-backed business securities that European investors can buy. It pays dividends at a variable annual rate of 11.25%.
Product Structure and Mechanics
The 21Shares Strategy Yield ETP gives you access to Strategy’s preferred stock STRC, which is officially known as Variable Rate Series A Perpetual “Stretch” Preferred Stock. It is meant to be a “cash-flow bridge” between traditional finance and Strategy’s Bitcoin treasury.
21Shares said the ETP structure is intended to make the instrument easier to access for European investors through standard brokerage accounts, rather than requiring investors to buy the preferred shares directly.
“STRC offers both institutional and retail investors an efficient and easy way to add yield to their portfolios by combining high income potential with a familiar exchange traded structure,” said 21shares president Duncan Moir.
Expansion Into Equity-Linked Exposure
The company positioned the launch as its first equity-linked product, expanding beyond its traditional lineup of crypto-only ETPs, Moir noted.
He went on to say that the company’s larger goal is to make digital assets easier to access for everyone.
Moir remarked, “Since the beginning, our goal has been to make it easy for people to access digital assets.” He went on to say, “With this product, we are using that knowledge to create equity-linked exposure tied to the Bitcoin ecosystem.”
21Shares has been in business since 2018 and is one of the biggest crypto ETP providers in the world. As of Monday, it managed around $5.3 billion over 60 ETPs on 13 exchanges.
The company has continued its global expansion, launching a new exchange-traded fund in the US on Tuesday: the 21Shares Spot SUI ETF (TSUI), which has started trading on the Nasdaq.
This comes after 21Shares launched several ETPs, as asset managers keep adding more regulated products linked to crypto markets for both institutional and retail investors.