21Shares launches crypto index ETFs under SEC’s Act 40
21Shares’ new crypto index ETFs utilize the stricter 1940 Act framework, marking a shift toward traditional fund oversight for diversified digital asset exposure.
Asset manager 21Shares has launched two cryptocurrency index exchange-traded funds (ETFs) regulated under the Investment Company Act of 1940, a structure that could boost investor confidence by subjecting the products to the same disclosure and governance rules that apply to traditional US investment funds.
The new products — the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC) — were announced on Thursday. Both offer broad exposure to digital assets by tracking FTSE Russell cryptocurrency indexes and holding a basket of the top crypto assets by market capitalization, rather than investing in a single token.
Federico Brokate, 21Shares’ global head of business development, said that index funds have enabled investors to gain diversified exposure to traditional assets, particularly stocks. “The same principle applies to crypto investing,” he said.