Crypto asset manager 21Shares is advancing actively managed exchange-traded products (ETPs and ETFs) as the next evolution of crypto investing. The firm sees demand shifting from passive price-tracking funds to strategies that combine research, risk management, and yield generation.
Duncan Moir, president of 21Shares, explained that the company applies bottom up research on individual crypto assets alongside quantitative and discretionary top down portfolio strategies. The firm has expanded its portfolio management and trading teams to support more sophisticated products capable of capturing emerging market opportunities.
Active ETFs globally held nearly $1.8 trillion in assets at the end of 2025, according to Morningstar and Goldman Sachs Asset Management. Moir noted that the integration with FalconX, which acquired 21Shares in October, will accelerate product development, particularly for more complex offerings.
Regional Demand and Yield-Generating Products
Investor interest differs by region. In the US, demand remains focused on major cryptocurrencies such as Bitcoin (≈$70,764) and Ether (≈$2,161). European institutional clients show more appetite for newer assets and application-layer exposure beyond layer-1 protocols.
Recently, 21Shares launched a European ETP tied to Strategy’s preferred stock (STRC), offering yield exposure within a Bitcoin-focused framework. Early adoption across regions indicates strong interest in yield-generating crypto products accessible through traditional brokerage platforms.
DeFi and Staking Driving Innovation
Crypto ETFs and ETPs are increasingly incorporating staking and yield features. For example, Grayscale enabled staking across its Ether ETPs, while BlackRock launched a Nasdaq-listed Ethereum product combining spot Ether exposure with staking yield, recording $15.5 million in first-day trading volume.
21Shares evaluates potential launches using internal research, client demand, and market trends, aiming to deliver either niche single-asset products or broader thematic offerings. Its cross-listed Bitcoin-and-gold ETP, active for four years, demonstrates strong risk-adjusted returns and portfolio diversification benefits, highlighting the firm’s strategy of integrating crypto with traditional assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.