- ETFs track top 10 crypto tokens with and without Bitcoin.
- ETFs structured under familiar U.S. financial law.
- Inclusion of non-Bitcoin assets may boost demand.
A top digital asset management firm 21Shares has formally filed two innovative cryptocurrency ETFs plans before the United States Securities and Exchange Commission (SEC). Approval of the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF are being pursued by the firm in collaboration with Teucrium ETFs and index provider FTSE Russell. The filings are a strategic decision to expand the access of institutions to digital asset portfolios under a regulated framework in the United States.
Source – SEC
The 21Shares FTSE Crypto 10 Index ETF seeks to track a market-cap-based basket of the ten largest cryptocurrencies, whereas its counterpart does not feature Bitcoin, looking instead at the top altcoins. The two ETFs guarantee a broad, managed exposure to the investor through the conventional investment vehicles that are anchored in the Investment Company Act of 1940. This type of regulatory framework can offer a greater degree of tax certainty and legal assurance than is currently enjoyed by the majority of existing crypto products and this could accelerate the mainstream adoption by the traditional finance sector.
Institutional Gateway to Diversified Crypto Exposure
Kristen Mierzwa, FTSE Russell Head of Digital Assets also highlighted the sound structure of the indices that are designed to offer strategic asset allocation and precise pricing architecture. It is anticipated that the partnership with Teucrium ETFs, which focuses on commodity and futures-based vehicles, will facilitate the review process at SEC since Teucrium has a proven track record as far as compliance is concerned.
Source – press release published on globenewswire
Federico Brokate, the head of the U.S. business at 21Shares, highlighted the increased interest of investors in diversified, regulatory-friendly access to crypto. Investors are seeking easy mechanisms to gain exposure to the long-term growth of the digital assets, Brokate said, noting that the firm plans to meet the need with ETF structures subject to regulatory approval.
The regulatory clarity, which is enhanced by the legislative initiatives such as the GENIUS Act, has altered the situation in favor of crypto tokenization and asset-backed instruments. This emerging paradigm can be used to offer a legitimate basis of organized crypto ETFs where products such as the one suggested can be easily accommodated within the existing norms of the financial markets.
According to market watchers, the launch of these ETFs would greatly boost liquidity and capital flows into the crypto sector, especially into other tokens outside Bitcoin hence boosting the digital asset ecosystem in the U.S..
Regulatory Milestone Could Reshape Crypto Investment Products
Should it be approved, the ETFs would become a significant development in regulated crypto products in the U.S. securities law. What is notable about the filings is that they suggest basket products to be traded under the Investment Company Act of 1940, which could be a landmark that might set new precedents in the institutional crypto investment.
Bitcoin has a dominant position in the crypto market of more than 60%, and it has a large trading volume. Nonetheless, the non-Bitcoin ETF emphasizes the diversification of the portfolio by highlighting key altcoins and new digital assets, which could trigger the increased interest of investors and entry of the institutional sector.
