21Shares Cuts Fees on HODL ETP, Boosts Investor Accessibility
Significant Fee Reduction on HODL ETP
In an exciting move for crypto investors, 21Shares AG has announced a notable fee reduction on its flagship product, the 21Shares Crypto Basket Index ETP (HODL). With a newly adjusted total expense ratio (TER) of just 0.99%, HODL is now more accessible than ever. Originally launched in 2018, this ETP was the world’s first physically-backed crypto investment vehicle and has since established itself as a leading option for those seeking diversified exposure to the crypto market.
New Fee & Rebalancing Schedule
The new fee structure will take effect immediately, representing a significant drop from the previous 2.50% rate. This change not only positions HODL among the most competitively priced crypto index ETPs globally but also reflects 21Shares' commitment to making cryptocurrency investments more affordable. Additionally, HODL will transition from a monthly to a quarterly rebalancing schedule starting on June 20, which aims to align more closely with investor needs and the overall market dynamics.
The Rationale Behind the Changes
According to Mandy Chiu, Head of Financial Product Development at 21Shares, this fee adjustment is part of their ongoing mission to provide institutional-grade crypto solutions that prioritize quality and transparency. She expressed optimism regarding the anticipated inflows into diversified crypto strategies and emphasized that reducing access costs for HODL is a natural progression as the market continues to mature.
Investing with the HODL ETP
The 21Shares Crypto Basket Index ETP provides exposure to a well-rounded portfolio of prominent cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and BNB. This diversified approach allows investors to navigate the sometimes volatile crypto landscape through a single product, streamlining investment while reducing associated risks.
Security and Custodianship
Another compelling aspect of HODL is that it is fully backed by physical assets, ensuring that all underlying digital currencies are securely held in cold storage by a regulated, institutional-grade custodian. This provides investors with peace of mind regarding transparency and asset safety—critical factors for retail and institutional investors alike.
Commitment to Innovation
21Shares’ reduction in fees for the HODL ETP highlights the company's aim to be at the forefront of the crypto investment space. With the largest suite of crypto ETPs available, 21Shares continues to innovate and redefine accessibility in cryptocurrency investment, helping bridge the gap between traditional finance and emerging decentralized finance.
Frequently Asked Questions
What is the significance of the fee reduction on HODL?
The fee reduction to 0.99% makes HODL one of the most competitive crypto index ETPs, improving accessibility for investors.
What changes are being made to the rebalancing schedule?
HODL will shift from monthly to quarterly rebalancing to better align with market dynamics and long-term investor strategies.
What cryptocurrencies does the HODL ETP track?
HODL offers exposure to leading cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and BNB, making it a diversified investment option.
How does 21Shares ensure asset security?
21Shares holds all underlying assets in cold storage with a regulated custodian, ensuring a high level of asset protection and transparency.
Why is HODL considered a good investment option?
With its competitive pricing, diversified portfolio, and institutional-grade backing, HODL is designed to meet the needs of investors seeking long-term exposure to the digital asset market.
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