Crypto ETFs Get a Boost with New Players
A New Era for Crypto ETFs
21Shares, a leading name in crypto ETPs, has introduced two groundbreaking ETFs. These are the first crypto index products registered under the Investment Company Act of 1940, a significant milestone as most crypto-linked funds in the U.S. are riskier and fall under the '33 Act.
Introducing TTOP and TXBC
The two new ETFs are:
- 21Shares FTSE Crypto 10 Index ETF (TTOP)
- 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC)
These ETFs provide a simpler, regulated way to invest in a basket of leading digital assets, including Ethereum, Solana, and Dogecoin. Bitcoin is only included in TTOP. Both funds rebalance every quarter to keep up with the dynamic crypto market.
Key Features and Costs
- TTOP
- Tracks the top 10 crypto assets globally.
- Expense Ratio: 0.50%.
- TXBC
- Focuses on real-world blockchain applications (excluding Bitcoin).
- Expense Ratio: 0.65%.
Why This Matters
Federico Brokate, Global Head of Business Development at 21Shares, explains that clients seek an easy, regulated way to invest in crypto without managing wallets or picking individual tokens.
Partnership and Strategy
21Shares collaborated with Teucrium Trading, known for using the '40 Act structure for commodity-linked funds. 21Shares will achieve exposure indirectly by investing in its own Europe-listed ETPs.
Market Outlook
While the launch is significant, multi-coin funds may take time to gain traction. The market remains volatile, with Bitcoin recently dipping below $100,000. Asset managers are racing to launch spot altcoin ETFs, but only two multi-coin index ETFs like these exist under the '33 Act.
