Bitcoin News Update: 21Shares Connects Conventional and Crypto Markets Through 40 Act ETFs

21Shares, a prominent provider of cryptocurrency exchange-traded products (ETPs), has

registered under the Investment Company Act of 1940 ("40 Act"), representing a notable regulatory breakthrough for digital assets. The (TTOP) and the (TXBC) provide investors with broad exposure to the top 10 cryptocurrencies, such as , , , and , all while complying with the same regulatory standards as conventional ETFs.

These new ETFs,

, are designed to address the increasing demand for regulated crypto investment options, especially among institutional and individual investors seeking straightforward, flexible access. tracks a wide selection of leading cryptocurrencies, , while omits Bitcoin to concentrate on smaller alternative coins. The two funds , respectively, making them a more affordable choice compared to single-asset ETFs.

"For the first time, investors can access a diversified crypto fund under the '40 Act structure, which is considered the benchmark for institutional investors," stated Duncan Moir, president of 21Shares.

to financial advisers than the single-asset products that were popular with retail investors earlier in 2024. This move by the company reflects a broader industry shift from spot Bitcoin ETFs to index-based solutions, though Moir .

This launch coincides with a period of increasing regulatory clarity for crypto investments,

for the first XRP spot ETF from Canary Capital. Still, to utilize the '40 Act structure, which enforces stricter rules for custody and taxation than the 1933 Act, often used for higher-risk crypto funds. This could make them more appealing to institutions concerned about regulatory risks.

The market has responded with cautious optimism. While single-asset Bitcoin ETFs like BlackRock's IBIT have attracted significant inflows, multi-asset crypto ETFs face hurdles in a turbulent market.

helps portfolios adjust to market dynamics automatically, reducing the need for frequent manual changes. The company's , known for its experience with commodity-based '40 Act funds, further highlights its commitment to regulatory standards.

As the crypto ETF sector develops, 21Shares' move into index-based offerings reflects a maturing industry. The firm's expertise in navigating regulatory requirements while providing innovative investment options could set a benchmark for future products, especially as competition heats up among asset managers seeking a share of the $140 billion U.S. crypto ETF market.