How can I invest in the new 21Shares Aave and Chainlink ETPs?
Discover Aave and Chainlink ETPs: 21Shares Unveils Six Exciting New Listings in Europe
21Shares, one of Europe’s leading crypto ETP issuers, has expanded access to digital assets with six new European listings, including single-asset ETPs that offer institutional-grade exposure to Aave (AAVE) and Chainlink (LINK). These physically backed products trade on major exchanges across the continent and aim to make it simpler for investors to gain regulated exposure to core Web3 building blocks: DeFi lending (Aave) and decentralized data/oracle infrastructure (Chainlink).
Why Aave and Chainlink Matter for Crypto Portfolios
Aave and Chainlink are foundational to on-chain finance and real-world adoption of blockchain data-two themes that remain central in 2025.
- Aave (AAVE): A leading DeFi money market. Aave v3 introduced risk isolation and more efficient cross-chain liquidity, while the GHO stablecoin continues to expand use cases within the Aave ecosystem. The AAVE token is used for governance and can be staked in the Safety Module for protocol risk backstopping.
- Chainlink (LINK): The dominant decentralized oracle network that secures price feeds, Proof of Reserve (PoR), and real-world data. Chainlink’s CCIP enables cross-chain messaging and token transfers, powering tokenization and institutional blockchain integrations. LINK is used for network fees and staking, with staking now in broader use through iterative upgrades.
| Feature | Aave (AAVE) | Chainlink (LINK) |
|---|---|---|
| Primary Role | DeFi lending/borrowing protocol | Decentralized oracle and cross-chain infrastructure |
| 2025 Catalysts | GHO adoption, v3 risk tooling, broader L2 presence | CCIP growth, tokenization integrations, PoR adoption |
| Typical ETP Structure | Physically backed, non-staking ETP | Physically backed, non-staking ETP |
| Expense Profile | Single-asset altcoin ETPs often ~1.49-2.50% TER | Single-asset altcoin ETPs often ~1.49-2.50% TER |
How 21Shares Crypto ETPs Work
Physically Backed, Exchange-Traded, and Custodied
- Structure: Crypto ETPs are exchange-traded debt securities that hold the underlying asset 1:1. They are not UCITS funds.
- Custody: Assets are held with institutional custodians (e.g., Coinbase Custody, Copper, BitGo) in segregated accounts, depending on the product and venue.
- Listings: 21Shares products are listed across major European venues such as SIX Swiss Exchange, Deutsche Börse Xetra, and Euronext (Paris/Amsterdam), improving broker access and trading hours.
- Liquidity: Professional market makers (e.g., Flow Traders, Jane Street) typically provide on-screen liquidity with creation/redemption to keep prices close to NAV.
Fees, Tracking, and Operations
- Fees: The total expense ratio (TER) for single-asset altcoin ETPs commonly falls between 1.49% and 2.50% annually. Always verify the latest KID/KIID.
- Tracking: ETPs aim to track the underlying asset net of fees. Premium/discount can arise intraday but is generally moderated by market-making.
- Settlement: Trades clear and settle like equities/ETFs through local clearing systems-no crypto wallet needed.
Six New Listings: What Changes for European Investors
The six new listings broaden access and flexibility across jurisdictions and trading currencies. The addition of Aave and Chainlink ETPs strengthens investor exposure to core Web3 primitives alongside existing Bitcoin, Ethereum, and staking-enabled suites.
- Broader access: More brokers and banks can route orders locally, often with EUR, CHF, or USD trading lines.
- Improved liquidity windows: Xetra and SIX schedules support active intraday trading for price discovery.
- Portfolio diversification: Exposure to DeFi credit markets (Aave) and oracle/CCIP rails (Chainlink) complements BTC/ETH and L2 narratives.
| Exchange | Region | Typical Trading Currencies |
|---|---|---|
| SIX Swiss Exchange | Switzerland | CHF, USD |
| Deutsche Börse Xetra | Germany | EUR |
| Euronext Paris/Amsterdam | EU | EUR |
How to Buy Aave and Chainlink ETPs in Europe
- Confirm your broker provides access to SIX, Xetra, or Euronext and supports crypto ETPs.
- Search for the specific 21Shares Aave or Chainlink ETP by name or ISIN on your broker platform.
- Review the KID/KIID for the latest TER, custodians, and risk disclosures.
- Use limit orders to manage spreads; check trading currency (EUR/CHF/USD) and hours.
- Track holdings like any equity; underlying coins are custodied by the issuer, not in your wallet.
Risks and Considerations
- Volatility: AAVE and LINK can experience large price swings, amplified in risk-off markets.
- Protocol risk: Smart contract bugs, governance changes, or token economic updates (e.g., Aave Safety Module changes; Chainlink staking parameters) can affect valuations.
- Regulatory landscape: Crypto ETP eligibility and tax treatment vary by country; check local rules.
- Fee drag: Over long horizons, TER reduces net returns versus holding coins directly.
- Market structure: Intraday premiums/discounts may occur; liquidity can vary by exchange and trading line.
Conclusion: Institutional-Grade On-Ramps to Web3 Primitives
With six new European listings that include Aave and Chainlink ETPs, 21Shares is deepening the regulated on-ramp to DeFi credit markets and decentralized data infrastructure. For investors who prefer exchange-traded, custodied exposure instead of self-custody, these physically backed ETPs offer a straightforward way to add AAVE and LINK to a diversified crypto strategy-while benefiting from the liquidity, transparency, and market access of Europe’s largest exchanges.
