Asset manager 21shares has expanded its range of cryptocurrency investment products by listing physically backed exchange-traded products (ETPs) for Zcash (ZEC) and Ether.fi (ETHFI) on Euronext Paris and Amsterdam. This development enables investors to access these digital assets via traditional brokerage accounts without holding the tokens directly.
Product details and market access
The new ETPs offer exposure to Zcash and Ether.fi’s governance and utility token, ETHFI. Both products are physically backed, meaning each ETP share is linked to actual holdings of the underlying cryptocurrency. Investors can buy and sell these ETPs on Euronext Paris and Amsterdam, two of Europe’s largest stock exchanges.
The ETHFI ETP tracks the performance of Ether.fi, a decentralized finance protocol focused on staking and providing other financial services within the digital asset space. The addition of these products aims to provide diversified access points for institutional and retail investors seeking crypto exposure through regulated channels.
Mini dictionary: Ether.fi, launched in 2023, is a decentralized finance protocol that allows users to stake Ether (ETH) and participate in a variety of DeFi services, using its governance and utility token, ETHFI.
Both offerings are positioned as physically backed alternatives to more synthetic investment options, appealing to those prioritizing transparency in fund holdings.
Fees and competitive landscape
The annual management fee for both the Zcash and ETHFI ETPs is set at 2.5%. This rate is significantly higher than the fees charged by many Bitcoin and Ether investment products currently available on European exchanges, which often range between 0.2% and 1.5%.
Higher fee structures may reflect the complexity and lower liquidity of these underlying assets, or the operational overhead related to physical custody of less widely traded cryptocurrencies.
| Product | Underlying Asset | Annual Fee | Exchange |
|---|---|---|---|
| 21shares Zcash ETP | Zcash (ZEC) | 2.5% | Euronext Paris, Amsterdam |
| 21shares Ether.fi ETP | Ether.fi (ETHFI) | 2.5% | Euronext Paris, Amsterdam |
| BTC/Ether ETPs (avg.) | Bitcoin, Ether | 0.2%–1.5% | Various European |
Industry participants are watching closely to see whether the higher fees will impact investor demand for these specialized products.
Zcash price surge and market attention
Zcash’s listing comes at a time when the privacy-focused cryptocurrency has captured significant market attention after a sharp rally over the past year. ZEC’s price recently exceeded $1,500, marking a gain of nearly 1,100%, based on CoinMarketCap data.
The surge has led to renewed discussion about Zcash as a potential alternative to Bitcoin, which remains the largest and most widely adopted digital asset. Some analysts have noted Zcash’s unique privacy features and its potential to attract users seeking more anonymity in blockchain transactions.
Zach Pandl, research head at Grayscale, has stated that Zcash could gain from “second-mover advantages,” which may allow it to overcome Bitcoin’s established network effects, a challenge that other early cryptocurrencies like Litecoin were unable to address successfully.
The recent market momentum has put Zcash back into focus for both investors and industry commentators comparing its prospects to established cryptocurrencies.
