New Gateway to DeFi Investment: How Ethena and Morpho ETP Are Changing the Traditional Lending Landscape

The crypto market is undergoing a profound transformation. As more institutional investors flood into the blockchain space, how to participate in DeFi in a compliant and convenient manner has become a key issue. The recently released Ethena ETP (EENA) and Morpho ETP (MORPH) by 21shares may hold the answer.

Bridge to DeFi Investment: Why These Two ETPs Are Worth Watching

These two exchange-traded products are listed on the Swiss SIX Exchange, Amsterdam Euronext, and Paris Euronext, supporting trading in USD and EUR. But their significance goes far beyond the product form itself—they represent a true integration of traditional finance with on-chain innovation.

In simple terms, institutional investors no longer need to directly operate wallets or connect smart contracts to gain exposure to DeFi protocols. Retail investors can also participate in the growth of decentralized finance without requiring deep technical knowledge.

Core Value of the Ethena Ecosystem

Ethena (ENA) is the driving force behind the USDe stablecoin. USDe maintains a 1 USD peg through a neutral hedging strategy and has accumulated approximately $8 billion in assets under management within just two years. What does this indicate? The market demand for on-chain native stablecoins exceeds expectations.

The ENA token plays a central role in the Ethena ecosystem—core to risk management, collateral frameworks, and fee distribution mechanisms. Currently, ENA is priced at about $0.22, with a circulating market cap of $1.77 billion. Through the Ethena ETP, investors can indirectly participate in this rapidly growing ecosystem while enjoying regulatory protections.

Morpho’s Lending Innovation

If Ethena has revolutionized the logic of stablecoins, Morpho redefines on-chain lending. This platform, built on the Morpho Blue architecture, has attracted over $9 billion in deposits and $4 billion in active loans, providing decentralized solutions for institutional-level lending needs.

The design principles of Morpho Vault V2 are noteworthy:

• Time-lock mechanism → Ensures sufficient transparency periods for each protocol upgrade
• Independent audit system → Continuous third-party oversight reduces risks
• Direct market-level redemption → Users can exchange assets directly without intermediaries

The philosophy behind these features prioritizes user protection. Investors can evaluate risks using tools like the Morpho calculator before making decisions.

21shares’ Market Position

As a subsidiary of FalconX, 21shares has launched over 55 crypto ETP products in Europe. The company’s competitive advantage lies in—ensuring regulatory compliance while maintaining R&D innovation. The release of Ethena and Morpho ETPs further confirms its strategic vision in DeFi infrastructure.

A Win-Win Situation for Institutions and Retail Investors

For institutional investors, this is a compliant channel—no need to build their own risk management systems, directly gaining DeFi exposure. For retail investors, participation barriers are lowered—no need to learn wallet operations or gas fee calculations to explore on-chain innovations.

The Future of DeFi Investment Is Here

From simply providing price exposure to designing products targeting DeFi infrastructure itself, the ETP market is undergoing a deep iteration. The significance of Ethena and Morpho ETPs lies in—they are not just investment tools but symbols of the handshake between traditional finance and the on-chain world.

As more institutions enter, these products will continue to evolve. DeFi investment is no longer just a game for geeks and traders but is gradually moving toward mainstream adoption. Driven by innovators like 21shares, the maturity of the crypto market is being redefined.