Goldman Sachs, JPMorgan, UBS clients buying the first ETP offering exposure to Polkadot’s DOT 🚨 This article is 4 years old...
Goldman Sachs, JPMorgan, UBS clients buying the first ETP offering exposure to Polkadot’s DOT
2 min read
Updated: Feb. 19, 2021 at 4:13 pm UTC
Data from the Bloomberg Terminal has revealed that some of the biggest Wall Street players have bought the world’s first exchange-traded product (ETP) for Polkadot. Goldman Sachs, JPMorgan, UBS, and ICAP have all bought different amounts of the Polkadot ETP shares, signaling the rising institutional appetite for crypto derivatives.
Major Wall Street players experimenting with a Polkadot ETP
The latest news coming out of Wall Street has shown that some of the largest industry players have shown a rising interest in the diverse product offering of the crypto market. According to data from Bloomberg Terminal obtained by CoinDesk, Goldman Sachs, JPMorgan, UBS, and ICAP have all bought the world’s first exchange-traded product (ETP) that offers exposure to Polkadot’s DOT token.
Launched at the beginning of February by 21Shares, a Swiss investment product provider, the Polkadot ETP (ticker: PDOT) is listed on the Swiss SIX Exchange. According to Laurent Kssis, the head of ETP at 21Shares, the Polkadot ETP currently has over $15 million in assets under management.
Data from Bloomberg Terminal revealed that Goldman Sachs purchased three lots of shares on behalf of a client. UBS, on the other hand, purchased 2,770 shares, while Bank of America’s Merrill Lynch bought 2,200 shares. ICAP purchased 1,000 shares, while JPMorgan bought 500.
Instinet, a broker-dealer owned by Japan’s Nomura Holdings, was the biggest investor in Polkadot’s ETP, having purchased 9,280 shares.
Wall Street execs stay silent while the popularity of ETPs explodes
A spokesperson for Goldman Sachs said it had no knowledge of the trades and that they would be looked into. None of the other companies shown to have bought the Polkadot ETP have responded to queries from journalists as of press time.
Nonetheless, the number of Polkadot ETP shares sold since the beginning of the month shows that there is significant demand from institutional investors for products that offer crypto exposure. Investing in exchange-traded products enables institutions to reap the benefits of a token’s performance without having to worry about custody. ETPs also offer institutions a way to comply with regulations.
The increased interest is seen clearly in the number of new products added to the SIX Exchange. There are currently six ETP providers with cryptocurrency products listed on the exchange and 34 ETPs listed in total. Users can buy shares of Bitcoin Cash ETP, Binance BNB ETP, Ethereum ETP, Ripple ETP, Tezos ETP, and FiCAS Active Crypto ETP.
Update: article title was updated to clarify institutional clients are buying the ETP.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.
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Bitcoin Cash
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Bitcoin Cash (BCH) is a cryptocurrency created via a fork of the Bitcoin network.
Tezos
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Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
JPMorgan
JPMorgan Chase & Co is a global leader in financial services, offering solutions to the world’s most important corporations, governments, and institutions in more than 100 countries.