Latest Crypto Fund Offers Yield on USD Amid Rampant Inflation

Crypto exchange-traded product issuer plans to launch between 20 and 30 more ETPs by end of 2022

article-image

Blockworks Exclusive Art by Axel Rangel

share

key takeaways

  • Product is designed to offer collateralized dollar-denominated yield at a 5% rate
  • 21Shares is looking into expanding its presence in several dozen countries

Cryptocurrency exchange-traded product issuer 21Shares’ latest fund is designed to divvy up yields  to investors amid concerns around inflation and fluctuating interest rates. 

The 21Shares USD Yield ETP (USDY) offers collateralized dollar-denominated yield at a 5% rate, the firm told Blockworks. The product generates yield by taking in US dollars and lending them to crypto counterparties against a minimum of 110% collateral in bitcoin and ether marked-to-market daily.

USDY — an exchange-traded product (ETP) — is set to become available on the SIX Swiss exchange on Wednesday and is available to investors in US dollars, with a fee of 30 basis points.  

“We see this ETP as a useful tool for investors to navigate market volatility and stay invested through complex market conditions — like today’s,” 21Shares President Ophelia Snyder said. “While investors grapple with inflation, fluctuating interest rates and a range of economic pressures, this product is a first-of-its-kind way for investors to both gain maximum exposure to risk-adjusted yield and preserve liquidity in their portfolios.” 

21Shares, which has more than $2.5 billion of assets under management, has launched a range of digital asset investment products this year, with more in the pipeline.

The Switzerland-based company earlier this month launched two DeFi-focused ETPs and more recently entered the US market with two index funds offering diversified exposure to some of the space’s largest assets.

21Shares intends to launch between 20 and 30 additional ETPs by the end of this year, Snyder said. 

The executive previously told Blockworks that 21Shares intends to establish a Middle Eastern foothold next month in Dubai. Snyder added that the company is looking at bolstering its presence in several dozen countries around the world.

“Our goal is to build bridges between the cryptocurrency and institutional investing world and increase accessibility to some of the world’s largest cryptocurrencies and blockchain ecosystems,” Snyder said. 


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

US dollars might technically be worth less, but it’s still good news

article-image

Apps are doing well, as is casino gaming, says Tom Schmidt of Dragonfly

article-image

Sponsored

Machine DeFi brings programmable peer-to-peer finance into contact with tangible machines that generate real-world value

article-image

What happens to your investment portfolio when the companies driving returns are no longer in it?

article-image

Wow, the ETF hype sure didn’t last long

article-image

The private sector lost 33,000 jobs in June; analysts had projected payrolls to add 100,000 positions