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26 March 2023
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Manager closes 6 cryptocurrency products due to low demand

Low demand for some cryptocurrencies has caused Switzerland-based digital asset product manager 21Shares to close six of its crypto products. The list includes products focused on decentralized finance (DeFi), on Bitcoin (BTC), Ether (ETH), among others.

The 21Shares Crypto Layer 1 ETP (LAY1), the 21Shares DeFi 10 Infrastructure ETP (DEFII), the 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), the 21Shares S&P Risk Controlled Ethereum Index ETP ( SPETH) and the 21Shares USD Yield ETP (USDY). Meanwhile, the sixth product, the 21Shares Terra Classic ETP (LUNA), was de-registered by 21Shares as of June 12th.

According to cryptocurrency exchange-traded products (ETP) provider, the six products have less than $700,000 in assets under management combined. That is, about R$ 3.6 million at the current exchange rate in reais.

“It is routine/standard practice in the ETP industry,” said a 21Shares spokesperson. “While these ETPs have seen relatively low demand, we are seeing continued strong demand in our other products. In fact, we ended our second strongest January in company history this year.”

As reported by 21Shares, the month of January 2023 was positive for the company. In all, the manager added US$ 26.95 million in new net assets in the first month of this year, compared to US$ 26.73 million in the same period last year, according to the company.

Two crypto products are the most popular, the 21Shares Ethereum ETP (AETH) and the 21Shares Bitcoin ETP, which have surpassed $200 million in assets under management. 21Shares reported that, in addition to these two ETPs, the company will continue to offer its first fund, the 21Shares Crypto Basket Index ETP (HODL).

21Shares tries to launch Bitcoin ETF
21Shares is one of the organizations that has been trying for some time to get approval from the United States Securities and Exchange Commission, the SEC, to launch a Bitcoin spot ETF (spot). In January of this year, as reported by CriptoFácil, the SEC rejected a request for an ETF of spot Bitcoins by ARK Invest in partnership with 21Shares. The parties have submitted the application to launch the ARK 21Shares Bitcoin ETF on May 13, 2022.

The SEC justified, as usual, that the parties failed “to demonstrate that their rules are adequate to protect the investing public from fraudulent and manipulative acts and practices”.

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