21Shares Submits Filing for Two Crypto ETFs with U.S. SEC: Key Details and Impact on Market
2025-07-20
21Shares, a major crypto investment firm managing over $11 billion in assets, has filed two new cryptocurrency ETFs with the U.S. Securities and Exchange Commission (SEC).
In partnership with Teucrium, a well-known name in commodity-focused ETFs, the move signals a strong institutional push into the digital asset space.
As regulatory clarity improves, particularly under the GENIUS Act, these ETF filings could reshape access to crypto investments in the United States.
What Are the Two Crypto ETFs Proposed by 21Shares?
21Shares, working with Teucrium, submitted filings for two distinct funds. The first is the 21Shares FTSE Crypto 10 Index ETF, which will track a market-cap-weighted index of the ten largest digital assets globally.
The second is the 21Shares FTSE Crypto 10 ex-BTC Index ETF, which will exclude Bitcoin, offering exposure to the broader crypto market without Bitcoin’s dominance.
Both ETFs aim to offer traditional investors a structured and regulated entry point into digital assets.
The decision to file under the Investment Company Act of 1940 reflects 21Shares’ approach to offering a familiar legal and taxation framework. These types of funds are often considered more acceptable for institutional portfolios due to their established compliance processes.
The indices used are developed by FTSE Russell, known for their strategic pricing models and transparent methodologies. According to Kristen Mierzwa, Head of Digital Assets at FTSE Russell, the goal is to offer tools that help investors with long-term digital asset allocation.
The structure and methodology have been designed to align with how institutional capital usually interacts with commodities and equity indices, but now applied to crypto.
This isn’t 21Shares’ first foray into crypto ETFs, but these particular filings are significant because they directly respond to the evolving regulatory landscape in the U.S.
If approved, they may become among the first crypto ETFs to offer broader exposure beyond just Bitcoin and Ethereum.
Read also: How the Latest Dogecoin ETF Can Help DOGE Go Up
How Does U.S. Regulation Support These ETF Filings?
The United States has taken key steps in recent months to clarify the legal environment around digital assets.
The passing of the GENIUS Act, which gained bipartisan support, has laid down a more structured framework for tokenisation, digital asset custody, and taxation.
This has encouraged companies like 21Shares to develop new investment products specifically tailored for compliance in the American market.
Under this regulatory structure, the SEC has provided clearer pathways for ETF applications, especially those filed under the 1940 Act.
This law, while originally designed for mutual funds, provides established legal guidelines and investor protections, making it more appealing to traditional institutions looking to enter the digital asset space.
The decision by 21Shares to partner with Teucrium is also strategic. Teucrium has a strong background in commodity-based ETFs and already has experience working with the SEC on complex ETF structures.
This collaboration is intended to enhance the likelihood of approval and compliance, particularly with rules related to futures and digital asset pricing mechanisms.
More broadly, the SEC has recently signalled a willingness to consider ETFs that track indices rather than holding crypto directly. This approach allows for a more diversified exposure and potentially reduces the perceived risk associated with custody or liquidity.
For institutional investors, such regulatory clarity is a prerequisite before allocating funds into this asset class.
With the growth of tokenisation, the new ETFs proposed by 21Shares could pave the way for more digital asset products in traditional financial markets.
This would align well with the current appetite from asset managers, pension funds, and family offices looking for exposure to crypto in a regulated manner.
Read also: Algorand ETP – Is It the Same as Algorand ETF?
Why This Matters for the Crypto Market and Institutional Investors
The filing of these two ETFs may appear as a standard industry update, but it carries broader implications.
For one, it reflects a shift from speculative trading to structured investment. As meme coins and hype-driven assets lose traction, institutional investors are looking for stable and diversified exposure to digital assets.
ETFs offer exactly that, and filings like this suggest confidence in both the asset class and the regulatory system supporting it.
21Shares believes that by the end of 2025, the global crypto ETF and ETP market could reach $250 billion in assets under management.
This would mark a massive jump from current figures and likely boost liquidity, reduce volatility, and expand participation in digital assets. With traditional financial players showing interest, the pressure on regulators to support such infrastructure increases.
Institutional demand is also being driven by improved custody solutions and pricing mechanisms. Index-tracking ETFs offer a familiar product format while spreading risk across multiple assets.
The inclusion of a fund that excludes Bitcoin is especially relevant, as it provides investors with the ability to gain crypto exposure without relying on the performance of the largest and most dominant asset.
These developments also indicate that crypto is moving beyond the retail phase. Instead of relying on speculative narratives, the market is gradually aligning with the frameworks and behaviours seen in traditional finance.
This includes the adoption of compliance structures, audited custodianship, and strategic asset allocation.
The broader market impact of these ETFs, if approved, could be significant. Retail platforms may follow by expanding offerings, traditional finance institutions may allocate more capital, and developers may benefit from increased stability and legitimacy in the space.
In short, it would mark a step closer to the integration of digital assets into mainstream portfolios.
Read also: Altcoin ETF Summer May Begin in July with SEC Approvals
Conclusion
The latest ETF filings from 21Shares, in collaboration with Teucrium, are a response to a maturing regulatory environment and growing institutional demand for crypto exposure.
As U.S. rules become clearer, particularly with the GENIUS Act now in place, more structured investment products are likely to emerge. These ETFs, tracking diversified indices, could offer safer and more strategic access to crypto for a wider investor base.
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Read also: Is Bitrue Alpha Worth It? Give it A Try Now
Frequently Asked Questions
What are the two ETFs filed by 21Shares?
The ETFs are the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF. One includes the top 10 crypto assets, and the other excludes Bitcoin.
Who is 21Shares partnering with for these ETFs?
21Shares is partnering with Teucrium, a firm known for its work in commodity and futures ETFs.
Why is the 1940 Act relevant to these ETF filings?
The 1940 Act provides a familiar regulatory and tax structure for institutional investors, making these ETFs more attractive for traditional finance.
What does the GENIUS Act have to do with crypto ETFs?
The GENIUS Act helps define legal standards for digital assets and tokenisation, enabling more crypto investment products like ETFs.
Where can I trade crypto safely?
You can trade crypto securely on Bitrue, a platform that offers easy access, strong security, and support for a wide range of digital assets.
Investor Caution
While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.
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