Summary: 21Shares files crypto index ETFs via ‘easy-to-access’ method – All you need to know

Crypto ETF Race Heats Up: 21Shares Takes a Faster Lane! 21Shares is strategically shaking up the cryptocurrency exchange-traded fund (ETF) market by filing for two new crypto index ETFs through a significantly faster approval route. Unlike many competitors, the firm has opted for the 1940 Investment Company Act, a lesser-used but quicker path, to bypass the typical, lengthy delays associated with the standard 1933 Securities Act filings. This innovative approach is a calculated move to avoid the protracted regulatory hurdles that have stalled other major players, including Grayscale and Bitwise, in their pursuit of crypto ETF approvals. Market experts indicate that 21Shares is proactively navigating the regulatory landscape, signaling an unwillingness to wait for the SEC to finalize a comprehensive crypto ETF framework. The new filings aim to offer investors diversified and easily accessible exposure to the rapidly growing digital asset market. One of the proposed funds, the 21Shares FTSE Crypto 10 Index ETF, is designed to track the performance of the top ten crypto assets by market capitalization. The second distinctive offering will focus specifically on the top ten programmable blockchains, emphasizing those with real-world applications beyond just Bitcoin. This dual strategy is intended to cater to a broad range of investor interests within the evolving crypto space. While Grayscale's large-cap fund conversion was approved under the 1933 Act, its live trading was subsequently paused, underscoring the SEC's cautious and often slow stance. By embracing the 1940 Act, 21Shares hopes to accelerate its market entry, capitalizing on the increasing demand for regulated crypto investment products. The industry keenly awaits the SEC's response to this expedited application, as its outcome could potentially establish a new precedent for future crypto ETF approvals.