Crypto asset manager 21shares sees actively managed exchange-traded products as the next frontier in crypto investing. President Duncan Moir said the firm combines bottom-up research with quantitative and discretionary strategies to manage risk and build sophisticated portfolios.
Moir noted the company has expanded its trading and portfolio teams to support new product development, especially following FalconX's acquisition of 21shares in October. The integration is expected to accelerate innovation in complex crypto offerings.
Demand for crypto ETPs diverges by region. In the U.S., interest remains concentrated in Bitcoin and Ether. In Europe, institutional investors are exploring newer assets and application-layer protocols beyond layer-1 blockchains.
21shares recently launched a European ETP tied to Strategy’s preferred stock (STRC), offering exposure to a high-yield, Bitcoin-focused capital strategy. The product has drawn strong early demand, reflecting investor appetite for accessible yield-generation through traditional brokerage channels.
The broader market is moving beyond passive tracking. Grayscale introduced staking across its ETPs, making its Ether funds the first U.S.-listed spot crypto ETFs to offer staking rewards. BlackRock launched a Nasdaq-listed staked Ethereum trust, which saw $15.5 million in trading volume on its debut.
21shares evaluates new products based on internal research, client demand, and forward-looking trends. Its long-standing Bitcoin-and-gold ETP, now cross-listed in London, has delivered strong risk-adjusted returns over four years, underscoring the diversification value of combining the two assets.