21Shares Brings First Spot Bitcoin ETP to Middle East

The region, now a hub for crypto companies, is “a market of significant strategic importance,” exec says

article-image

Source: 21Shares

share

key takeaways

  • The Middle East received $270 billion worth of crypto between July 2020 and June 2021 — a 1,500% increase from the year prior
  • The firm plans to expand into about a dozen more regions, executives of 21Shares’ parent company told Blockworks after its $25 million raise in September

The world’s largest crypto ETP issuer has brought the first physically backed bitcoin ETP to the Middle East as the firm continues expanding globally after a fresh round of funding. 

21Shares’ new product is listed on Nasdaq Dubai, marking the company’s first entry into the region. The company lists 46 products across 12 exchanges in seven countries.

The launch comes after the firm raised $25 million last month in a funding round led by hedge fund Marshall Wace — giving the company a roughly $2 billion valuation. Hany Rashwan, CEO of 21Shares parent company 21.co, previously told Blockworks that the firm wants all its products — ranging from single-asset crypto ETPs to indexes — in “every single geography.”

The executive called the Middle East “a crypto hotspot,” pointing to the region’s standout year-over-year growth in crypto value received amid currency devaluation concerns in a number of its countries. 

The Middle East received $566 billion in cryptocurrency from July 2021 to June 2022, according to a Chainalysis report published last week, 48% more than they received the year prior.

“The region has become a hub for crypto companies and exchanges…especially following India’s decision to tax earnings from crypto at 30%,” Rashwan told Blockworks.

“The Middle East’s level of interest and crypto-friendliness made it a prime market for expansion for 21Shares,” he said.

After Dubai revealed its first cryptocurrency legislation in March, the emirate granted virtual asset licenses to FTX and Binance that month. Kraken revealed plans to expand to the UAE in April — opting for neighboring emirate Abu Dhabi — while others such as Crypto.com, OKX and Komainu have also flocked to the area.

Sherif El-Haddad, formerly head of asset management at Al Mal Capital, joined 21Shares in August as the company’s head of the Middle East.

“Cryptocurrencies are fast becoming the asset of the future for investors and wealth managers around the world, as global crypto adoption and investment levels continue to accelerate at pace — and the Middle East is a major accelerator of this growth,” El-Haddad said in a statement.

“The UAE, and broader [Gulf Cooperation Council], is a market of significant strategic importance to our business, and we are excited about the opportunity this market opens to us,” he added.

21Shares launched the first bitcoin and ether ETFs in Australia in May. Executives said last month that the firm is seeking to expand into about a dozen more regions but declined to share specific areas.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit