21Shares Launches First 1940 Act Crypto Index ETFs

21Shares has expanded its lineup of digital-asset investment products with the introduction of two new cryptocurrency index ETFs, offering U.S. investors regulated exposure to major crypto assets such as Bitcoin, Ethereum, Solana, and Dogecoin. These funds are the first crypto index ETFs registered under the Investment Company Act of 1940, marking a significant regulatory milestone and giving investors new options for diversified crypto access within a familiar and highly regulated framework.

The two ETFs—the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC)—debuted on Thursday. Developed in partnership with Teucrium, both funds respond to rising demand for simple, broad-market crypto exposure without the need for buying and managing individual digital assets. Instead of holding cryptocurrencies directly, the ETFs gain exposure through publicly traded securities, a structure intended to enhance investor protections and reduce potential conflicts of interest under the 1940 Act.

TTOP tracks a market-cap-weighted index of the ten largest cryptocurrencies and comes with a management fee of 0.50%. TXBC, which excludes Bitcoin and focuses on networks tied to real-world blockchain applications, charges a 0.65% fee. According to 21Shares, many investors prefer a single diversified gateway to the crypto market rather than selecting individual tokens, making these products an attractive entry point.

What sets these ETFs apart is their regulatory path. While most crypto ETFs have launched under the 1933 Securities Act—typically used for riskier, commodity-like structures—the decision to use the 1940 Act aligns these funds with well-established mutual fund and ETF standards. Institutional investors often favor this approach for its clearer compliance rules and tax treatment. Teucrium’s background in commodity-linked ETFs helped shape the fund design.

The launches come amid heightened market volatility, with Bitcoin recently dipping below $100,000 for the first time since June. This environment may affect early inflows as investors remain cautious, yet the growing competition among asset managers indicates strong long-term interest in multi-asset crypto ETFs. Prior to TTOP and TXBC, only two multi-coin crypto index ETFs existed—both regulated under the 1933 Act—highlighting the significance of 21Shares’ new offerings as the market continues to mature.