Societe Generale Partners with 21Shares to Boost Crypto ETP Liquidity

Societe Generale and 21Shares AG have teamed up to improve the liquidity of Bitcoin and Ethereum exchange-traded products (ETPs). The partnership targets institutional investors, particularly in Germany and Eastern Europe. Societe Generale, known for its role in ETF/ETP trading, will now bring its market-making expertise to 21Shares’ crypto ETPs. This move allows institutional investors to access these digital assets without direct crypto custody, reducing risks and enhancing trading efficiency.

By facilitating over-the-counter liquidity, the partnership aims to reduce bid-ask spreads and mitigate volatility on institutional trades. These efforts align with broader trends where regulated ETP providers join forces with major banks, such as Deutsche Bank’s previous collaborations, resulting in heightened trading activities. Additionally, this partnership is expected to increase demand and confidence among institutional investors further. Societe Generale’s role as a market maker will likely deepen the order books and refine execution quality, positively impacting institutional market sentiment.

Given the established frameworks for regulated trading platforms, there are no new regulatory changes; rather, this partnership emphasizes enhancing market infrastructure. The focus remains on Bitcoin (BTC) and Ethereum (ETH), utilizing their ETP wrappers to facilitate efficient and secure investment options. As the collaboration progresses, further developments in investor engagement and financial returns are anticipated, largely impacting European markets.

“We are thrilled to partner with Societe Generale, a major player in the European ETF space, as we continue to expand access to our ETPs. By bringing liquidity to our Bitcoin and Ethereum ETPs, Societe Generale is helping us deliver the most efficient and trusted crypto investment solutions to the market.” – Alistair Byas-Perry, Global Head of Capital Markets & EMEA Investment, 21Shares