21Shares US LLC announced that it has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for two Funds, the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF.

The exchange-traded funds are the first crypto basket ETFs to be registered under the Investment Company Act of 1940. Each Fund is designed to offer diversified exposure to the crypto market through dedicated indexes, constructed by 21Shares and maintained by FTSE Russell.

• The 21Shares FTSE Crypto 10 Index ETF tracks a market cap-weighted index of the top ten largest crypto assets globally. This index dynamically adjusts to reflect the size and success of each asset, allowing the market itself to determine the leaders. Larger, more relevant cryptocurrencies naturally hold greater weights, capturing the evolving landscape of the crypto space.
• The 21Shares FTSE Crypto 10 ex-BTC Index ETF tracks a separate FTSE Russell index that excludes Bitcoin, investing exclusively in cryptocurrencies and blockchain networks that focus on real-world applications beyond Bitcoin’s macro hedge proposition.

Asset inclusion in the index is subject to a dual-layer research review by both FTSE Russell and 21Shares.

Structured as 1940 Act funds, the ETFs also offer investors a familiar and more tax-efficient vehicle, qualifying for Form 1099 tax reporting instead of the more complex K-1 forms often associated with other structures.

“These filings represent a step in 21Shares’ regulatory engagement in the U.S.,” said Federico Brokate, Head of U.S. Business at 21Shares. “Investors are increasingly looking for diversified and easy-to-access ways to participate in the long-term growth of digital assets, and 21Shares aims to provide ETF structures to satisfy this demand, subject to regulatory approval.”

“The methodology and structure behind our digital asset pricing and indices were developed to give investors strategic allocation tools”, said Kristen Mierzwa, Head of Digital Assets at FTSE Russell. “Collaborating with 21Shares on a market exposure pair – with and without Bitcoin – underscores our commitment to innovation in digital asset investing.”

21Shares is launching the two Funds in partnership with ETF Solutions by Teucrium, who serves as the adviser and white-label platform supporting the development and efficient market entry of these products.

A registration statement relating to the Funds has been filed with the SEC but has not yet become effective.

Source: 21Shares