21Shares Files for First Crypto Basket ETFs
- 21Shares filed registration for two crypto basket ETFs with the SEC.
- The funds would track FTSE Crypto 10 indexes with and without Bitcoin exposure.
- These would be the first crypto basket ETFs registered under the Investment Company Act.
21Shares has filed registration statements with the U.S. Securities and Exchange Commission for two crypto basket exchange-traded funds, marking the first such products to be registered under the Investment Company Act of 1940, according to a press release announcing the filing.
The crypto ETFs offer exposure to multiple cryptocurrencies through a single fund structure rather than individual token investments. The funds won't invest directly in cryptocurrencies, rather they will hold exchange-traded products, registered ETFs and financial instruments, including swap agreements and futures contracts, according to the filing.
The two funds—the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF—would track dedicated indexes constructed by 21Shares and maintained by FTSE Russell, according to the registration statement filed last week.
The FTSE Crypto 10 Index includes the top 10 largest crypto assets by market capitalization, with Bitcoin comprising 74.6% of the index as of June 30, according to the filing. Ethereum accounts for 11.6%, while XRP represents 4.6% of the weighting.
The ex-Bitcoin version excludes Bitcoin entirely, with Ethereum comprising 45.4% of that index, followed by XRP at 18.1% and Binance Coin at 12.6%, according to the filing.
21Shares Targets Crypto ETF Growth
"Investors are increasingly looking for diversified and easy-to-access ways to participate in the long-term growth of digital assets," Federico Brokate, head of U.S. business at 21Shares, said in the release.
21Shares is launching the funds in partnership with ETF Solutions by Teucrium, which serves as adviser and white-label platform, according to the announcement.
"The methodology and structure behind our digital asset pricing and indices were developed to give investors strategic allocation tools," Kristen Mierzwa, head of digital assets at FTSE Russell, said in the release.
The registration statements have been filed but have not yet become effective, according to the company.
