Crypto asset manager 21Shares is moving into actively managed exchange-traded products as the market evolves beyond passive, price-tracking funds.
Duncan Moir, president of 21Shares, told Cointelegraph that crypto’s nascency and rapid growth make it well-suited to active management. The firm combines bottom-up research on individual assets with quantitative and discretionary top-down strategies to manage risk and position portfolios. To support more sophisticated offerings, 21Shares has expanded its portfolio management and trading teams.
“We’ve had to hire and build out the team with people who have different trading and portfolio management expertise, but now we have a solid team and we think we’ll be able to deliver strong actively managed products.”
Active ETFs globally held nearly $1.8 trillion in assets at the end of 2025, according to Morningstar and Goldman Sachs Asset Management data. Moir said integration with FalconX, which acquired 21Shares in October, should accelerate product development as the company pursues more complex strategies.
Demand for crypto ETPs and ETFs differs by region. “The interest is still concentrated in the larger coins in the US. In Europe, institutional clients are more interested in newer assets and the application layer beyond the layer-1s,” Moir said, attributing the divergence to a more mature European investor base that already holds Bitcoin (BTC) and Ether (ETH) and is seeking to broaden crypto allocations.
Reflecting that trend, 21Shares recently launched a Europe-listed ETP linked to Strategy’s preferred stock (STRC), offering exposure to a high-yield instrument tied to a Bitcoin-focused capital strategy. Moir said the product has seen strong early demand across regions, signaling appetite for yield-generating assets accessible through traditional brokerages.
Crypto ETPs are increasingly moving beyond passive exposure. Staking — earning yield by locking assets to support blockchain networks — is gaining traction. In October, Grayscale introduced staking across its ETPs, making its Ether funds the first US-listed spot crypto ETFs to offer staking rewards while extending staking to its Solana trust pending approval. In March, BlackRock launched a Nasdaq-listed Ethereum product that incorporates staking, recording $15.5 million in trading volume on its first day.
21Shares evaluates potential product launches based on three factors: internal research, client demand and broader market trends. Its research team identifies early opportunities, institutional feedback gauges interest, and market trend analysis informs whether to pursue niche single-asset ETPs or broader thematic offerings.
Moir cited 21Shares’ Bitcoin-and-gold ETP as an example of this approach. Cross-listed in London and live for four years, he said the product has delivered strong risk-adjusted returns among European ETPs and offers sensible diversification benefits across Bitcoin and gold.
As the ETP/ETF landscape matures, issuers are exploring active management, staking and other yield-generating features to broaden investor choices beyond simple spot exposure.
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