The crypto asset management landscape is on the brink of a significant transformation, with 21shares leading the charge in actively managed exchange-traded products (ETPs). According to Duncan Moir, president of 21shares, the nascent nature of crypto assets makes them particularly well-suited for active management strategies, a move that could redefine how investors approach the digital asset class.
Active Management: A New Frontier
Moir explained to Cointelegraph that 21shares combines bottom-up research on individual assets with quantitative and discretionary top-down strategies to manage risk and optimize portfolios. This approach is a departure from the traditional price-tracking funds that have dominated the market. The company has been bolstering its portfolio management and trading teams to support these more sophisticated products, ensuring that they can deliver robust and innovative solutions to investors.
Expanding Horizons with FalconX
The acquisition of 21shares by FalconX in October is expected to accelerate product development, especially as the company ventures into more complex offerings. Moir noted that the integration will enhance 21shares’ capabilities and allow for a more diverse range of products that cater to the evolving needs of the market.
Regional Demand Dynamics
Demand for crypto ETPs and ETFs varies significantly by region. In the U.S., interest remains concentrated on larger, more established coins like Bitcoin (BTC) and Ether (ETH). However, in Europe, institutional clients are increasingly interested in newer assets and the application layer beyond the primary blockchain networks. This divergence is attributed to a more mature investor base in Europe, where institutions that already hold BTC and ETH are looking to diversify their crypto allocations.
Yield-Generating Assets Gain Traction
21shares recently launched an ETP in Europe linked to Strategy’s preferred stock (STRC), offering exposure to a high-yield instrument tied to the company’s Bitcoin-focused capital strategy. This product has seen strong early demand, reflecting a growing appetite among investors for yield-generating assets that are accessible through traditional brokerage platforms.
Global Trends in Active ETFs
Active ETFs worldwide held nearly $1.8 trillion in assets at the end of 2025, according to data compiled by Morningstar and Goldman Sachs Asset Management. This trend is not limited to traditional assets; the crypto sector is following suit, with issuers like Grayscale and BlackRock introducing staking and yield-generating features in their ETPs and ETFs.
Strategic Launch Criteria
When evaluating potential new ETPs, 21shares considers three key factors: internal research, client demand, and broader market trends. The company’s research team identifies early opportunities, while institutional feedback helps gauge interest. This approach ensures that 21shares can respond to the dynamic crypto market and deliver products that meet the evolving needs of investors.
Conclusion
As the crypto market continues to mature, the shift towards actively managed ETPs and ETFs is a natural progression. 21shares’ strategic approach, supported by its enhanced capabilities and the integration with FalconX, positions the company at the forefront of this evolution. By offering sophisticated, yield-generating products that cater to both institutional and retail investors, 21shares is poised to play a pivotal role in shaping the future of crypto investing.
About the Author
