Introduction: Expanding Horizons in the MENA Region
21Shares, a leading global provider of cryptocurrency exchange-traded products (ETPs), has taken a significant step by launching a physical Bitcoin (BTC) ETP in the United Arab Emirates (UAE). This marks a pivotal moment for the firm as it seeks to establish a stronger foothold in a rapidly growing market.
Details of the Bitcoin ETP
The newly introduced 21Shares Bitcoin ETP, trading under the ticker ABTC on Nasdaq Dubai, is backed by physical BTC assets, meaning it is fully collateralized with a 1:1 leverage ratio. Hany Rashwan, co-founder and CEO of 21Shares, explained to Cointelegraph that the ETP’s underlying assets are securely stored in an offline wallet, enhancing security.
Strategic Expansion into the UAE
For 21Shares, this launch is not merely an addition to its product lineup; it signifies a strategic expansion into the UAE, which is recognized for its crypto-friendly environment. Currently, the company lists ETPs across 12 exchanges globally, including notable platforms such as the SIX Swiss Exchange, Deutsche Börse, and now Nasdaq Dubai.
Rashwan highlighted the UAE’s position as a leader in crypto adoption within the Arab world, noting that it received more cryptocurrency circulating than any other regional country in 2021. He articulated the firm’s expectations for robust interest in its offerings due to the Middle East’s openness to cryptocurrency:
“In terms of MENA, we expect strong interest given the crypto-friendly nature of the region.”
The Growing Crypto Ecosystem
The MENA region has witnessed a surge in activity, with various crypto companies and major exchanges such as FTX, Kraken, and Blockchain.com establishing operations there. This dynamic environment has encouraged more investors to engage with cryptocurrency, especially in light of regulatory developments in neighboring countries like India, which imposed a hefty tax on crypto earnings.
Peer Firms in the Market
21Shares isn’t the lone player in its field in the UAE. The Canadian investment firm 3iQ launched a competing Bitcoin ETP on Nasdaq Dubai last year, trading under the ticker QBTC. However, it is important to note that while 3iQ offers indirect exposure to Bitcoin, it is not physically backed, distinguishing it from 21Shares’ product.
Leadership and Future Prospects
The launch of the new ETP comes on the heels of organizational changes within the company. In August, 21.co, the parent firm of 21Shares, appointed Sherif El-Haddad as head of its MENA operations. El-Haddad is noted for his previous experience in asset management and efforts to launch a physically-backed crypto fund, although that proposal was not approved at his former company.
Conclusion: Hopes for Growth in the Crypto Market
As 21Shares rolls out its physical Bitcoin ETP in Dubai, it highlights the growing interest and viability of cryptocurrency investment products in the Middle East. The company’s innovative approach to blending traditional finance with blockchain technology has the potential to attract considerable investment in the region, fortifying the UAE’s position as a key player in the global crypto market.
