Swiss-based investment product firm 21Shares is launching two crypto exchange-traded-products (ETP) in the U.S. as the firm seeks to capitalize on global crypto investor demand.
The two products are its first crypto investment products for U.S. customers and will only be available to accredited investors, 21Shares said.
The 21Shares Crypto Basket 10 Index Fund will track prices of the top ten cryptocurrencies by market cap that are available on U.S. exchanges. Meanwhile, the 21Shares Mid-Cap Index Fund offers investors exposure to the “next tier of emerging cryptos,” or those which rank from third to tenth in market cap.
"Historically, the cumulative return rate of the top dozen cryptocurrencies has vastly outperformed traditional indexes like the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite,” Arthur Krause, 21Shares’ vice president of product, said in the statement. “Our two new index funds enable accredited investors to participate in cryptocurrencies without assuming the responsibility of managing custodial arrangements, tracking private keys and passwords, or being susceptible to hacking or security breaches.”
In Europe, 21Shares recently launched a new vehicle focused on the SAND token to give investors exposure to The Sandbox’s metaverse and gaming platform. In April, the SEC rejected a spot bitcoin exchange-traded fund (ETF) application in which 21Shares had teamed up with Cathie Wood’s ARK Investment Management.
21Shares says it built the world's first crypto exchange-traded product (HODL) in 2018 on the SIX Swiss Exchange. The firm currently offers over 30 ETPs globally, aside from the 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, 21Shares’ CEO told CoinDesk. “Despite market ups and downs, the fundamentals have not changed and our mission remains the same.”
Rashwan remains positive on the broader scope of products available to investors.
“There is a clear appetite for spot bitcoin ETFs – as shown most recently by our launch in Australia." Rashwan said. "However, that has not diminished the interest in crypto ETPs more broadly – we continue to see strong inflows and interest globally.”
21Shares said last week it was unable to provide creation and redemption operations for its LUNA-related investment vehicle, given the collapse of algorithmic stablecoin UST and the entire LUNA ecosystem.
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