Swiss crypto finance firm 21Shares has just launched the first-ever cryptocurrency index ETFs in the US market that comply with the Investment Company Act, marking a pivotal step toward integrating digital assets into mainstream finance.
Unlike previous crypto ETFs issued under the Securities Act, these new products fall under the stringent regulatory framework that governs traditional US investment funds. This provides institutional investors with an unprecedented, compliant channel for allocating to crypto assets.
01 Breakthrough Products
The two newly launched funds—21Shares FTSE Crypto 10 Index ETF and 21Shares FTSE Crypto 10 ex-BTC Index ETF—usher in a new era for crypto ETFs.
The first tracks the top ten cryptocurrencies including Bitcoin, while the second tracks the top ten excluding Bitcoin.
This structure allows investors to gain broad exposure to the entire crypto market with a single trade, eliminating the need to purchase and store multiple individual tokens.
02 The Far-Reaching Impact of the ’40 Act
These new funds are established under the Investment Company Act, widely regarded as the "gold standard" of US fund regulation.
Compared to crypto ETFs issued under the Securities Act, ’40 Act funds offer stronger investor protections, stricter compliance standards, and more favorable tax treatment.
This regulatory upgrade puts crypto ETFs on equal legal footing with mainstream equity and bond funds, removing barriers for institutional investors and wealth managers seeking exposure to digital assets.
03 Key Product Details
According to official information, the 21Shares FTSE Crypto 10 Index ETF carries a management fee of 0.5%, while the 21Shares FTSE Crypto 10 ex-BTC Index ETF charges 0.65%.
Both products are built on 21Shares’ established European product structure, targeting institutional investors and professional advisors.
As of November 12, data shows that in the ex-Bitcoin ETF (TXBC), Ethereum accounts for 48.43% of underlying assets, XRP for 16.43%, BNB for 15.60%, and Solana for 9.76%.
04 Market Environment and Opportunities
The launch of these new products comes at a time of significant volatility in the crypto market—Bitcoin’s price has just dropped below the $100,000 mark for the first time in six months.
This volatility serves as a reminder to investors that, even within a more regulated investment framework, risk management remains paramount in crypto investing.
Nonetheless, institutional demand continues to grow. Financial giants like T. Rowe Price and Bitwise are preparing similar funds, signaling that diversified and accessible crypto investments are gaining traction on Wall Street.
05 Mainstream Adoption Challenges
Despite progress in regulatory frameworks, crypto still faces hurdles before it can fully integrate into mainstream finance.
Regulatory clarity, price stability, and reliable tax guidance are key factors that will determine whether these new products achieve widespread adoption.
For individual investors, large-scale participation may only come once the market stabilizes further or after these products have proven themselves.
06 Transforming Investment Access
The core value of 21Shares’ new offerings lies in dramatically lowering the barriers for investors to access multiple cryptocurrencies.
Traditionally, investing in crypto required opening accounts on various exchanges, managing multiple wallets and private keys, and executing separate trading strategies.
Now, with a single ETF, investors can gain instant exposure to a basket of leading cryptocurrencies—all managed through familiar, traditional brokerage accounts.
For those seeking to benefit from blockchain’s growth without taking on the risk of individual projects, this brings unprecedented convenience and diversification.
Looking Ahead
As more traditional financial institutions follow suit with similar products, Wall Street’s stance on crypto has shifted from mere interest to genuine acceptance.
A new chapter for the crypto market is unfolding—this time, dressed in a suit and backed by robust investor protections and regulatory compliance.
Financial innovation continues to move forward, but now it’s traveling on a much more regulated path.
