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21Shares Launches First '40 Act Crypto Index ETFs as Investors Seek Diversified Exposure

MarketDash Editorial Team
23 days ago
21Shares debuts two crypto index ETFs under the Investment Company Act of 1940, offering investors a regulated path to diversified digital asset exposure without the complexity of managing wallets or picking individual tokens.

If you want exposure to crypto but don't feel like managing a dozen wallets or researching which tokens are worth your time, 21Shares has a new answer. The Swiss issuer just rolled out two crypto index ETFs, and here's what makes them interesting: they're the first crypto index products registered under the Investment Company Act of 1940.

The 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC) represent something of a shift in how crypto funds are structured. Most crypto-linked funds in the U.S. fall under the '33 Act, which comes with a riskier regulatory framework. The '40 Act structure, by contrast, is what you typically see with traditional mutual funds and ETFs—more investor protections, more oversight.

So what do you actually get? Both funds offer a one-ticker route into a diversified basket of leading digital assets. We're talking Ethereum, Solana, Dogecoin, and others, with Bitcoin included only in TTOP. The funds rebalance quarterly, which makes sense given how quickly things move in crypto.

Federico Brokate, Global Head of Business Development at 21Shares, noted that clients increasingly want a "simple, regulated way" to access broad crypto exposure without the hassle of juggling wallets or picking individual tokens themselves.

The fee structures differ slightly between the two. TTOP charges 0.50% and tracks the FTSE Crypto 10 Select Index, a market-cap-weighted basket of the top 10 crypto assets globally. TXBC excludes Bitcoin and focuses on real-world blockchain applications, charging 0.65% while tracking the FTSE Crypto 10 ex Bitcoin Select Index.

21Shares, one of the world's largest crypto ETP providers, partnered with Teucrium Trading to bring these products to market. Teucrium pioneered the use of the '40 Act structure for commodity-linked funds, so they know the playbook. This time around, 21Shares achieves the desired crypto exposure indirectly by investing in its own Europe-listed ETPs.

But let's be realistic about expectations. While the product category is expanding, don't expect Bitcoin-level enthusiasm right away. According to Reuters, Duncan Moir, President of 21Shares, said uptake of multi-coin funds will likely be slower.

The timing is noteworthy too. These ETFs are entering a choppy market where Bitcoin recently dipped below $100,000 amid rising risk aversion and increasingly stiff competition. Asset managers are racing to launch spot altcoin ETFs left and right. Before these two, there were only two other multi-coin index ETFs under the '33 Act: the Grayscale Digital Large Cap Fund (GDLC) and the Hashdex Nasdaq Crypto Index ETF (NCIQ).

The question now is whether investors see enough value in the diversification and regulatory comfort to embrace these index products, or whether they'll stick with single-asset plays that have dominated the space so far.

Back to News

21Shares Launches First '40 Act Crypto Index ETFs as Investors Seek Diversified Exposure

MarketDash Editorial Team
23 days ago
21Shares debuts two crypto index ETFs under the Investment Company Act of 1940, offering investors a regulated path to diversified digital asset exposure without the complexity of managing wallets or picking individual tokens.

If you want exposure to crypto but don't feel like managing a dozen wallets or researching which tokens are worth your time, 21Shares has a new answer. The Swiss issuer just rolled out two crypto index ETFs, and here's what makes them interesting: they're the first crypto index products registered under the Investment Company Act of 1940.

The 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC) represent something of a shift in how crypto funds are structured. Most crypto-linked funds in the U.S. fall under the '33 Act, which comes with a riskier regulatory framework. The '40 Act structure, by contrast, is what you typically see with traditional mutual funds and ETFs—more investor protections, more oversight.

So what do you actually get? Both funds offer a one-ticker route into a diversified basket of leading digital assets. We're talking Ethereum, Solana, Dogecoin, and others, with Bitcoin included only in TTOP. The funds rebalance quarterly, which makes sense given how quickly things move in crypto.

Federico Brokate, Global Head of Business Development at 21Shares, noted that clients increasingly want a "simple, regulated way" to access broad crypto exposure without the hassle of juggling wallets or picking individual tokens themselves.

The fee structures differ slightly between the two. TTOP charges 0.50% and tracks the FTSE Crypto 10 Select Index, a market-cap-weighted basket of the top 10 crypto assets globally. TXBC excludes Bitcoin and focuses on real-world blockchain applications, charging 0.65% while tracking the FTSE Crypto 10 ex Bitcoin Select Index.

21Shares, one of the world's largest crypto ETP providers, partnered with Teucrium Trading to bring these products to market. Teucrium pioneered the use of the '40 Act structure for commodity-linked funds, so they know the playbook. This time around, 21Shares achieves the desired crypto exposure indirectly by investing in its own Europe-listed ETPs.

But let's be realistic about expectations. While the product category is expanding, don't expect Bitcoin-level enthusiasm right away. According to Reuters, Duncan Moir, President of 21Shares, said uptake of multi-coin funds will likely be slower.

The timing is noteworthy too. These ETFs are entering a choppy market where Bitcoin recently dipped below $100,000 amid rising risk aversion and increasingly stiff competition. Asset managers are racing to launch spot altcoin ETFs left and right. Before these two, there were only two other multi-coin index ETFs under the '33 Act: the Grayscale Digital Large Cap Fund (GDLC) and the Hashdex Nasdaq Crypto Index ETF (NCIQ).

The question now is whether investors see enough value in the diversification and regulatory comfort to embrace these index products, or whether they'll stick with single-asset plays that have dominated the space so far.