- 21Shares files first regulated crypto ETFs under 1940 Act framework.
- Teucrium joins 21Shares to launch crypto funds excluding Bitcoin.
- New ETFs offer diversified crypto exposure with traditional tax benefits.
21Shares US LLC has filed two landmark crypto exchange-traded funds with the U.S. Securities and Exchange Commission (SEC), making a bold entry into regulated digital asset investment. This filing, done in partnership with Teucrium Trading LLC, marks the first time crypto basket ETFs have been structured under the Investment Company Act of 1940.
The proposed ETFs are the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF. These funds are designed to provide investors with diversified access to the crypto market, using indices developed by 21Shares and maintained by FTSE Russell.
The 21Shares FTSE Crypto 10 Index ETF aims to track the top ten cryptocurrencies globally. The index adjusts dynamically based on market capitalization, allowing leading assets to hold greater weight. This setup gives investors a direct view of the most relevant digital assets in real time.
Meanwhile, the 21Shares FTSE Crypto 10 ex-BTC Index ETF excludes Bitcoin from its portfolio. This ETF focuses on tokens and blockchain networks that offer practical applications beyond Bitcoin’s hedge-like role. Both indices follow a strict research process conducted jointly by 21Shares and FTSE Russell.
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New Structure Combines Crypto Access With Familiar Regulatory Standards
Structured as 1940 Act funds, these ETFs offer tax advantages and investor familiarity. They qualify for Form 1099 tax reporting, removing the complexity of K-1 forms often used by alternative investment vehicles. This structure could appeal to investors seeking traditional tax treatment in the crypto space.
21Shares’ move comes as regulatory clarity around tokenization grows in the U.S. President Donald Trump recently signed the GENIUS Act into law, strengthening the legal framework for digital assets and opening doors for institutional participation.
Teucrium, known for its experience in commodities and futures ETFs, will serve as adviser and white-label platform. Their role includes supporting the funds’ development and market readiness, ensuring a smooth entry for both products.
FTSE Russell’s Kristen Mierzwa highlighted the index design as a tool for strategic crypto exposure. She added that offering both Bitcoin-inclusive and Bitcoin-exclusive products allows investors to tailor their market exposure effectively.
Conclusion
By filing the first 1940 Act crypto basket ETFs, 21Shares and Teucrium are taking a pioneering step in regulated digital asset investing. The products aim to combine crypto innovation with traditional investment structures, pending SEC approval.
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