Press Release: Developments Regarding XRP Relevant To 21Shares' ETPs

12/29/2020 | 02:00am
   Zurich - December 29, 2020 -- In the U.S., the U.S. Securities and 
Exchange Commission (SEC) alleged that XRP had been illegally marketed 
to retail customers. As a result of this, XRP is affected by severe 
price developments and illiquidity. 
   On December 23, 2020, the Bitwise Select 10 Large Cap Crypto Index 
(BITS10), the Index serving as the Underlying for the 21Shares' KEYS ETP, 
was reconstituted in accordance with the applicable Index Methodology. 
XRP was removed as an Underlying Component from the Index and the 
respective XRP were reallocated to the remaining Underlying Components 
as per the respective announcement. 
   On December 24, 2020, MV Index Solutions GmbH 
as the index administrator of the 21Shares 
Crypto Basket Index (HODL5 
), the Index serving as the Underlying for HODL, decided and announced 
in line with the applicable Index Guide that XRP be removed from the 
21Shares Crypto Basket Index (HODL5) and, therefore, as an Underlying 
Component for HODL. The replacement Underlying Component will likely 
only be communicated on the Monthly Rebalance Date. Based on Condition 
9.3 and Condition 18, the Issuer has exercised its discretion and, to 
protect Investors' interests, decided to sell the XRP and to invest the 
proceeds in Bitcoin (BTC) and Ethereum (ETH) currently serving as an 
Underlying Component (proportional to current allocations). Such 
proceeds will be invested in the replacement Underlying Component as 
soon as known in line with ordinary rebalancing procedures. time period, 
to remove XRP from the basket following the announcement of the Index 
   "As part of our quick intervention, the board was able to remove XRP 
using its broad network of liquidity providers in order to liquidate its 
XRP position with the ultimate aim of reducing market impact and 
protecting investors to which it was able to achieve", said Hany Rashwan 
CEO and Chairman of the board of directors of 21Shares, "thanks to our 
trusted partners, our main objective remains to replicate accurately our 
index and we were able to successfully conduct this ad hoc task despite 
the difficult trading conditions". 
   The board of directors of 21Shares wishes to inform the market that it 
is also monitoring the situation in regard to AXRP, the single asset ETP 
tracking the underlying component XRP. 
   Affected ETPs: 
   HODL - 21Shares Crypto Basket ETP (CH0445689208) 
   KEYS - 21Shares Bitwise Select 10 ETP (CH0475986318) 
   AXRP - Single asset ETP in relation to price developments:21Shares XRP 
ETP (CH0454664043) 
   MVIS publication under 
   The listing prospectus is available in English free of charge from the 
registered office of the Issuer or on its website 
   About 21Shares 
   21Shares makes investing in crypto assets as easy as buying shares using 
your conventional broker or bank. Investors can invest in 
cryptocurrencies using a conventional ETP structure (or tracker) easily, 
with total confidence and security, cost effectively thanks to the 
21Shares suite of ETPs launched by 21Shares and now composed of 11 
Crypto ETPs : the 21Shares Crypto Basket Index ETP (HODL:SW), 21Shares 
Bitcoin (ABTC:SW), 21Shares Ethereum (AETH:SW), 21Shares XRP (AXRP:SW), 
21Shares Bitcoin Cash ETP (ABCH:SW), 21Shares Binance ETP (ABNB:SW), 
21Shares Tezos ETP (AXTZ:SW), 21shares Bitcoin Suisse ETP (ABBA:SW), 
21Shares Bitwise 10 ETP (KEYS:SW), Sygnum Platform Winners Index ETP 
(MOON:SW) and 21Shares Short Bitcoin ETP (SBTC:SW). The entire suite is 
listed on a regulated framework on the official market of Deutsche 
Boerse, SIX Swiss Exchange, BX Swiss and some on Boerse Stuttgart in CHF, 
USD, GBP and EUR respectively. Founded in 2018, 21Shares is led by a 
team of talented serial entrepreneurs and experienced banking 
professionals from the technology and financial world. Incorporated in 
Zug, with offices in Zurich and New York, the company has launched 
several world firsts, including the first listed crypto index (HODL) in 
November 2018. 21Shares has 11 crypto ETPs listed today and has over 
$239 million in AuM in total listed products. 
   Press Contact 
   Laurent Kssis +41 44 260 86 60 
   This document and the information contained herein are not for 
distribution in or into (directly or indirectly) the United States, 
Canada, Australia or Japan or any other jurisdiction in which the 
distribution or release would be unlawful. This document does not 
constitute an offer of securities for sale in or into the United States, 
Canada, Australia or Japan.This document does not constitute an offer to 
sell, or a solicitation of an offer to purchase, any securities in the 
United States. The securities of 21Shares AG to which these materials 
relate have not been and will not be registered under the United States 
Securities Act of 1933, as amended (the "Securities Act"), and may not 
be offered or sold in the United States absent registration or an 
applicable exemption from, or in a transaction not subject to, the 
registration requirements of the Securities Act. There will not be a 
public offering of securities in the United States.This document is only 
being distributed to and is only directed at: (i) to investment 
professionals falling within Article 19(5) of the Financial Services and 
Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) 
high net worth entities, and other persons to whom it may lawfully be 
communicated, falling within Article 49(2)(a) to (d) of the Order (all 
such persons together being referred to as "relevant persons"); or (iv) 
persons who fall within Article 43(2) of the Order, including existing 
members and creditors of the Company or (v) any other persons to whom 
this document can be lawfully distributed in circumstances where section 
21(1) of the FSMA does not apply. The Securities are only available to, 
and any invitation, offer or agreement to subscribe, purchase or 
otherwise acquire such securities will be engaged in only with, relevant 
persons. Any person who is not a relevant person should not act or rely 
on this document or any of its contents. In any EEA Member State (other 
than the Austria, Belgium, Denmark, Finland, France, Germany, Great 
Britain, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, 
Spain and Sweden) that has implemented the Prospectus Regulation (EU) 
2017/1129, together with any applicable implementing measures in any 
Member State, the "Prospectus Regulation") this communication is only 
addressed to and is only directed at qualified investors in that Member 
State within the meaning of the Prospectus Regulation. Exclusively for 
potential investors in Austria, Belgium, Denmark, Finland, France, 
Germany, Great Britain, Ireland, Italy, Luxembourg, Malta, the 
Netherlands, Norway, Spain and Sweden the 2019 Base Prospectus (EU) is 
made available on the Issuer's website under The approval of the 2019 Base Prospectus (EU) should 
not be understood as an endorsement by the SFSA of the securities 
offered or admitted to trading on a regulated market. Eligible potential 
investors should read the 2019 Base Prospectus (EU) and the relevant 
Final Terms before making an investment decision in order to understand 
the potential risks associated with the decision to invest in the 
securities. You are about to purchase a product that is not simple and 
may be difficult to understand. This document is not an offer to sell or 
a solicitation of an offer to buy or subscribe for securities of 
21Shares AG. Neither this document nor anything contained herein shall 
form the basis of, or be relied upon in connection with, any offer or 
commitment whatsoever in any jurisdiction. This document constitutes 
advertisement within the meaning of the Swiss Financial Services Act and 
not a prospectus. Copies of the current Base Prospectus dated 13 
November 2020 are available free of charge from the website of the 
Issuer. Subject to applicable securities laws, the Base Prospectus and 
the final terms of any product mentioned herein can be obtained from 
21Shares AG on the website. Copies of this document may not be sent to 
jurisdictions, or distributed in or sent from jurisdictions, in which 
this is barred or prohibited by law. The information contained herein 
does not constitute an offer to sell or the solicitation of an offer to 
buy, in any jurisdiction in which such offer or solicitation would be 
unlawful prior to registration, exemption from registration or 
qualification under the securities laws of any jurisdiction. 

(END) Dow Jones Newswires

December 29, 2020 02:00 ET (07:00 GMT)

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