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Switzerland-based investment product issuer – 21Shares – is launching two private funds tailored for US accredited investors to gain exposure to crypto assets. The products will track top and mid-tiers cryptocurrencies available on US exchanges.
Entering the US Market
According to the press release by the firm, the two products – 21Shares Crypto Basket 10 Index Fund and 21Shares Crypto Mid-Cap Index Fund – will respectively track the performance of the “Vinter 21Shares Crypto Basket 10 US Index,” made up of the top 10 crypto assets by market cap, and “Vinter 21Shares Crypto Mid-Cap US Index,” which includes a basket of emerging mid-tier digital assets.
The two crypto exchange-traded products (ETPs) are the first-ever such investment products by the firm for US customers. Arthur Krause, Director of Product at 21Shares, said the new features will help potential crypto investors manage their investments without worrying about custodial arrangements:
“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. 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.”
21Shares CEO Hany Rashwan considered the latest step into the US market as part of its global expansion plan and reportedly noted that the recent market fluctuations have not changed its long-term strategy for crypto assets. He also clarified that the company’s interest in spot Bitcoin ETFs does not override its consistent endeavors in crypto ETPs.
Bitcoin ETFs Launched in Australia
Earlier last year, the firm teamed up with ARK Investment Management, attempting to launch a Spot Bitcoin ETF for US Investors. However, the SEC officially rejected the proposal in April – a move understood as the top watchdog’s consistent antagonism to greenlight a spot Bitcoin ETF.
Earlier this month, though, the firm successfully launched the Bitcoin and Ethereum ETFs in Australia, which will track the price of respectively BTC and ETH in Australian dollars. The news came after the Canadian watchdogs approved the nation’s first Bitcoin exchange-traded fund last February, while the Brazilian authorities did the same a few months later.
At that time, Rashwan said 21Shares might provide similar funds with other underlying assets in the future.
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