21 Shares AG, the Swiss crypto ETP issuer saw its AUM reach $500 million after launching the first fully collaterized crypto ETP back in November 2018. The firm has joined the elite list of ETP/ETFs with over $500M in AUM.
Hany Rashwan, CEO 21Shares said,
“We launched the first crypto basket ETP in November 2018. It took others in the market almost two years to catch up with our innovative concept. While they have been focused on the issues we solved two years ago, we have continued to innovate and construct ever more advanced products such as the world’s first inverse bitcoin ETP which is also centrally cleared for the benefit of institutional investors.”
21 Shares AG’s crypto ETP comprises a basket of crypto assets backed by physically settled contracts and is offered on several top exchanges in Europe that include Deutsche Boerse, SIX Swiss Exchange, BX Swiss, the Wiener Boerse, and MTF on Börse Stuttgart.
The firm currently offers 12 different ETP products to institutions the most recent being the world’s first Polkadot ETP.
Would Grow Institutional Demand Make Way for Bitcoin ETF in the US?
The institutional demand for crypto has grown significantly over the past few years especially in 2020 owing to the pandemic and changing financial ecosystem. While many countries in Europe allow for crypto ETP/ETF listings, the US regulatory body SEC up until now has rejected several Bitcoin ETF proposals. However, the change in administration has got the hopes of the crypto community high of favorable regulations.
Currently, institutions are using publically traded Trust funds such as Grayscale’s GBTC. The large premiums and a $30B AUM of Grayscale are quite indicative of institutions growing cryptocurrency investment.
02/04/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) February 4, 2021
21 Shares is looking to offer more diversified crypto products in the market as many other firms have started to venture into this space. The firm’s CEO disclosed their upcoming products and how they plan to remain at the top. Raswan said,
“We remain ahead and operate on a very different curve than any of the other contenders in the crypto space for institutional financial products, partly because of our depth of knowledge in both the crypto asset and ETP/ETF spaces. In the coming months, we intend to deliver up to three more products to the market that will not only give institutional and retail clients safe and easy access to crypto assets but also show the financial markets that blockchain protocols can be engineered to capture superior returns.”