First Spot Bitcoin ETP to the Middle East bought to you by 21Shares
- The world’s largest crypto ETP issuer has brought the first physically backed bitcoin ETP to the Middle East as the company continues to expand globally after a new round of funding
- Middle East’s level of interest and crypto-friendliness made it perfect for expansion
- Between July 2020 and June 2021, the Middle East received $270 billion worth of crypto, a 1,500% increase from the previous year.
Executives of the parent company of 21Shares told Blockworks that the company plans to expand into about a dozen more regions.
The new product from 21Shares is the company’s first foray into the Middle East. It is listed on Nasdaq Dubai. The business has 46 products listed on 12 exchanges in seven nations.
The Middle East received $566 billion in cryptocurrency from July 2021
The launch comes after the company received a valuation of approximately $2 billion and raised $25 million in a funding round last month, led by hedge fund Marshall Wace.21.co CEO Hany Rashwan previously stated to Blockworks that the parent company of 21Shares wants all of its products, from single-asset crypto ETPs to indexes, to be available in every single geography.
The executive referred to the Middle East as a crypto hotspot, citing the region’s notable year-over-year growth in cryptocurrency value despite concerns about currency devaluation in several of its nations.
A Chainalysis report from last week says that the Middle East received $566 billion in cryptocurrency from July 2021 to June 2022. This is 48% more than they received the year before.
The emirate of Dubai granted virtual asset licenses to FTX and Binance in March, following the publication of its initial cryptocurrency legislation.
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Middle East is now a hub for crypto companies
In April, Kraken announced that it would expand into the United Arab Emirates. It chose to do so in Abu Dhabi, a neighboring emirate, while Crypto.com, OKX, and Komainu have also moved there.
Al Mal Capital’s former head of asset management, Sherif El-Haddad, joined 21Shares in August as the Middle East head of the company.
El-Haddad said in a statement that 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 the pace. He added that the Middle East has been a major driver of this growth.
He continued that the UAE and the Gulf Cooperation Council as a whole are a market of significant strategic importance to our business, and we are excited about the opportunity this market opens up to us.
In May, 21Shares launched the first bitcoin and ether exchange-traded funds (ETFs) in Australia. Executives said last month that the company wants to expand into about a dozen more areas, but they wouldn’t say which ones.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
