The new funds are its pioneer crypto products to the United States customers but will be only available to accredited customers.
21Shares, a Swiss-based investment product firm, is unveiling two crypto exchange-traded products as it focuses on capitalizing on the growing investor demand.
21Shares Crypto Index Funds Targeting Accredited Clients
21Shares explained that the two products are the first crypto-related products for US clients and will only be made available to accredited investors.
- 21Shares Crypto Basket 10 Index Fund will track the prices of the leading ten cryptocurrencies based on market cap available in the United States exchanges.
- 21Shares Mid-Cap Index Fund will provide investors more exposure to the “next tier of the fast emerging cryptos,” among those ranking from 3rd to 10th based on market cap.
From a historical point of view, the cumulative return rate of the top cryptocurrencies has outperformed the traditional indexes, such as S&P 500, NASDAQ Composite, or Dow Jones Industrial Average. “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,” said Arthur Krause, the vice president of 21Shares, in a statement.
Global Expansion Strategy
In Europe, 21Shares has recently launched a new vehicle that is focused on the SAND token to provide targeted clients/ investors with exposure to Sandbox’s metaverse and gaming platform. In April 2022, the United States Securities Exchange Commission (SEC) rejected the spot ETF application where 21Shares partnered with Cathie Wood’s ARK Investment Management.
21Shares points out that it created the first international crypto exchange-traded product (HODL) back in 2018, which is listed on SIX Swiss Exchange. Now, 21Shares has more than 30 ETPs traded internationally other than the US products. In April, 21Shares debuted two ETFs in Australia: the Bitcoin (BTC) ETF and Ethereum (ETH) ETF.
According to Hany Rashwan, the 21Shares CEO, this is an excellent time to build and innovate as part of the company’s strategy. While there are many ups and downs, the fundamentals have not changed.
“There is a clear appetite for spot Bitcoin ETF – 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,” the CEO added.
Last week, 21Shares said it was not able to provide creation and redemption operations for its LUNA-related investment vehicle because of the collapse of the algorithmic stablecoin UST.