21Shares seeks SEC approval for two new crypto ETFs, including one without Bitcoin

21Shares has partnered with commodity-focused asset manager Teucrium to file two new cryptocurrency index ETFs with the U.S. Securities and Exchange Commission. The proposed funds, 21Shares FTSE Crypto 10 Index ETF and 21Shares FTSE Crypto 10 ex-BTC Index ETF, will be structured according to the Investment Company Act of 1940, or as recent Solana staking ETFs did.

FTSE Crypto 10 Index ETF will aim to replicate a market-cap-weighted basket of the top 10 digital assets in the world. This second non-Bitcoin tracking product will use a different FTSE Russell index made of leading non-Bitcoin tokens. They both seek to offer investors clear and broad access to digital assets in familiar ETF structures.

Kristen Mierzwa, Head of Digital Assets at FTSE Russell, pointed to the construction of the indices, which were crafted to provide strategic allocation differentials grounded on a strong digital asset pricing architecture.

Nate Geraci, president of The ETF Store, noted the unique positioning of these funds, pointing out that the ETF indicates the increased investor demand in coverage beyond BTC.

Tokenization strategy aligns with growing institutional demand

Federico Brokate, Head of U.S. Business at 21Shares, pointed out that interest in diversified crypto exposure, and particularly regulatory-compliant vehicles, remains strong among investors. The firm’s use of the ’40 Act framework signals a shift toward integrating crypto with traditional financial structures, offering tax and legal familiarity to U.S. investors.

“Investors are increasingly looking for diversified and easy-to-access ways to participate in the long-term growth of digital assets, and 21Shares aims to provide ETF structures to satisfy this demand, subject to regulatory approval.”

~ Federico Brokate

21Shares is also advancing efforts in crypto tokenization, where legislative advances in the U.S. have led to regulatory clarity. The recently signed GENIUS Act gives more clarity regarding stablecoins and digital asset-backed instruments. This compliance environment makes structured crypto-based ETFs more feasible, according to industry participants.

The collaboration with Teucrium also aligns with the 21Shares strategy on uniting traditional finance with digital assets. Teucrium has experience issuing commodity and futures-based ETFs under compliant structures, which could expedite SEC inspection of the crypto index products.

Bitcoin and Ethereum ETFs draw record institutional inflows

Institutional momentum has been observed in the ETF market. According to SoSoValue, spot Bitcoin ETFs in the U.S. saw $799.4 million in net buyers on July 16. The streak of positive flows over ten days pushed the total cumulative inflows to above $53.8 billion.

BlackRock’s iShares Bitcoin Trust recorded nearly $764 million in new inflows, reaching an asset management rate of $86.7 billion. In the meantime, ETFs on Ethereum had a record-breaking demand. On the same day, U.S. spot ETH ETFs saw a new single-day record of net inflows, at $726.7 million. BlackRock ETHA and Grayscale ETHE have shown a daily growth of over 11%.

The increasing popularity of spot crypto ETFs and the increasing regulatory framework, with regulatory bills such as the GENIUS Act, portend a larger shift toward institutional adoption.

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