Crypto Basket ETF Filings Made by 21Shares for Initial Offering
Two new crypto basket Exchange-Traded Funds (ETFs) have been filed with the U.S. Securities and Exchange Commission (SEC) by 21Shares US LLC. The 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF are set to be the first crypto basket ETFs registered under the Investment Company Act of 1940, marking a significant step in the regulatory engagement of 21Shares in the U.S. 15
Investment Strategies and Features
The 21Shares FTSE Crypto 10 Index ETF tracks a market cap-weighted index of the top ten largest cryptocurrencies globally. This index dynamically adjusts to reflect the market capitalization and success of each crypto asset. Larger, more relevant cryptocurrencies have higher weights, allowing the fund to capture the evolving leadership in the crypto market. The fund offers diversified exposure to the top major crypto assets by market capitalization.
On the other hand, the 21Shares FTSE Crypto 10 ex-BTC Index ETF tracks a dedicated FTSE Russell index that excludes Bitcoin. This ETF focuses on cryptocurrencies and blockchain projects with real-world applications beyond Bitcoin's role as a macro hedge. It targets diversified exposure to the crypto market excluding the dominant Bitcoin, emphasizing alternatives with utility use cases.
Asset Inclusion Criteria
Both ETFs track indexes constructed by 21Shares and maintained by FTSE Russell. Inclusion in these indexes undergoes a dual-layer research review process involving both FTSE Russell and 21Shares, ensuring assets meet criteria for size, relevance, and applicability to the fund’s theme.
Regulatory Status
As the first crypto basket ETFs registered under the Investment Company Act of 1940, these ETFs are compliant with U.S. regulatory standards for mutual funds and ETFs. The registration statement was filed with the SEC in July 2025, positioning these funds for sale to U.S. investors who seek regulated, diversified crypto exposure. 15
The two Funds are advised by ETF Solutions by Teucrium, and the partnership between 21Shares and ETF Solutions by Teucrium is for the development and efficient market entry of these products. The ETFs are structured as 1940 Act funds, offering investors a familiar and more tax-efficient vehicle, qualifying for Form 1099 tax reporting instead of complex K-1 forms.
Kristen Mierzwa, Head of Digital Assets at FTSE Russell, stated that the methodology and structure behind their digital asset pricing and indices were designed to provide investors with strategic allocation tools. The ETFs are maintained by FTSE Russell.
In summary, the 21Shares FTSE Crypto 10 Index ETF offers market cap-weighted exposure to the top ten crypto assets, while the FTSE Crypto 10 ex-BTC Index ETF provides a Bitcoin-excluded alternative focusing on crypto projects with real-world utility. Both funds are backed by reputable index construction and maintenance from FTSE Russell and subjected to thorough asset vetting, with formal regulatory registration enhancing investor confidence.
- These new ETFs, the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF, are investments that focus on digital assets in the field of finance, leveraging technology to provide diversified exposure to the top major crypto assets by market capitalization for investors.
- Despite excluding Bitcoin, the 21Shares FTSE Crypto 10 ex-BTC Index ETF still offers an opportunity for investors to engage in the crypto market, emphasizing utility-based blockchain projects and cryptocurrencies as alternative investments, demonstrating the expanding landscape of digital assets beyond Bitcoin.
