21Shares Aligns for Crypto Market Growth with New ETFs
21Shares Moves Forward with Two New Crypto ETFs
21Shares US LLC has taken a significant step in the realm of digital assets by filing a registration statement with the U.S. Securities and Exchange Commission (SEC) for its two newest funds: the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF. This marks a significant milestone, as these will be the premiere crypto basket ETFs to be registered under the Investment Company Act of 1940.
Understanding the New ETFs
These exchange-traded funds (ETFs) are designed to provide diversified exposure to the ever-evolving crypto market. The funds utilize indexes constructed by 21Shares and maintained by FTSE Russell, ensuring robust oversight and methodology.
21Shares FTSE Crypto 10 Index ETF
The 21Shares FTSE Crypto 10 Index ETF tracks a dynamically adjusted, market cap-weighted index of the top ten cryptocurrency assets around the globe. What sets this index apart is its responsiveness to the market, allowing it to reflect the success and scale of each asset in real-time. This means that larger and more relevant cryptocurrencies will command more weight, effectively capturing changes in market dynamics.
21Shares FTSE Crypto 10 ex-BTC Index ETF
On the other hand, the 21Shares FTSE Crypto 10 ex-BTC Index ETF focuses on a distinct index that excludes Bitcoin. Instead, it invests in cryptocurrencies and blockchain networks emphasizing practical applications beyond Bitcoin's typical role as a macro hedge. This approach widens the scope for investors seeking alternative crypto investments.
Investment Efficiency and Tax Benefits
Both ETFs are structured under the 1940 Act, presenting an advantage for investors. These funds qualify for Form 1099 tax reporting, which is notably simpler than the K-1 forms that often come with other investment structures. This simplifies the tax reporting process, making these funds more appealing to investors.
Statements from Company Leaders
Federico Brokate, the Head of U.S. Business at 21Shares, expressed enthusiasm regarding these filings, highlighting the increasing demand for diversified and accessible avenues for investment in digital assets. According to Brokate, "These filings represent a step in 21Shares’ regulatory engagement in the U.S., aiming to meet investor demand with ETF structures, pending regulatory approval."
Kristen Mierzwa, the Head of Digital Assets at FTSE Russell, further explained that the structure and methodology behind the pricing and indices were intentionally devised to equip investors with strategic allocation tools. Her insight reaffirms FTSE Russell's commitment to innovating the landscape of digital asset investments.
Collaboration with ETF Solutions
To launch these two funds, 21Shares has partnered with ETF Solutions by Teucrium, who will serve as the adviser and white-label platform, aiding in the efficient market entry of these products. This collaboration underscores a mutual commitment to delivering innovative investment solutions that cater to market demands.
About 21Shares
21Shares AG is a leading provider of cryptocurrency exchange-traded products, known for offering the most extensive suite of crypto ETPs in the market. Founded with a vision to enhance the accessibility of cryptocurrency investments, 21Shares has established a remarkable track record since launching the world's first physically-backed crypto ETP in 2018. Backed by a specialized research team and deep capital markets expertise, the company continues to innovate and provide efficient investment solutions for a growing digital asset market.
Frequently Asked Questions
What are the new ETFs filed by 21Shares?
21Shares has filed for the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF, focused on different aspects of the crypto market.
How do these ETFs differ?
The main difference is that the first ETF includes Bitcoin while the second excludes it, targeting cryptocurrencies with real-world applications.
What benefits do these ETFs offer investors?
These ETFs provide diversified exposure with the advantage of a simplified tax reporting process through Form 1099.
What partnership supports the creation of these ETFs?
21Shares is collaborating with ETF Solutions by Teucrium to facilitate the development and market entry of these ETFs.
How is 21Shares positioning itself in the market?
21Shares aims to engage proactively with regulators while addressing increasing investor demand for digital asset investment opportunities.
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