Switzerland-based investment products firm 21Shares is launching two exchange-traded crypto (ETP) products in the U.S. to capitalize on global crypto investor demand.
The two products are the first crypto investment products for U.S. clients and will be available only to accredited investors, 21Shares said.
The 21Shares Crypto Basket 10 Index Fund will track the prices of the top 10 cryptocurrencies by market capitalization available on U.S. exchanges. Meanwhile, the 21Shares Mid-Cap Index Fund offers investors exposure to the "next tier of emerging cryptocurrencies," those that rank between third and tenth in terms of market size.
"Historically, the cumulative return of the top dozen cryptocurrencies has far outpaced traditional indexes such as the S&P 500, Dow Jones Industrial Average or Nasdaq Composite," Arthur Krause, vice president of product at 21Shares, said in the statement. "Our two new index funds allow accredited investors to participate in cryptocurrencies without the responsibility of managing custody arrangements, tracking private keys and passwords, or being vulnerable to hacking or security breaches."
International Expansion
In Europe, 21Shares recently launched a new vehicle focused on the SAND token to provide investors with exposure to The Sandbox's Metaverse and gaming platform. In April, the SEC rejected an application for a bitcoin exchange-traded spot fund (ETF) in which 21Shares had partnered with Cathie Woods ARK Investment Management.
21Shares says it developed the world's first exchange-traded crypto product (HODL) in 2018 on the SIX Swiss Exchange. The company currently offers more than 30 ETPs globally, aside from U.S. products, according to its website. In late April, 21Shares launched a Bitcoin (BTC) and Ethereum (ETH) ETF in Australia.
"Right now is a great time to build and innovate as part of a longer-term strategy," Hany Rashwan, CEO of 21Shares, told CoinDesk. "Despite the ups and downs of the market, the fundamentals haven't changed and our mission remains the same."
Rashwan remains positive about the broader range of products available to investors.
"There is a clear appetite for spot bitcoin ETFs - as demonstrated most recently by our launch in Australia." said Rashwan. "However, that hasn't diminished interest in crypto ETPs more broadly - we continue to see strong inflows and interest globally."
21Shares said last week that it was unable to guarantee the creation and redemption of investments in its LUNA-related investment vehicle in light of the collapse of the algorithmic stablecoin UST and the entire LUNA ecosystem.