21Shares launches crypto index ETFs under SEC’s Act ’40

Overview

21Shares has launched new crypto index ETFs that operate under the stricter framework of the 1940 Act. This development signifies a move towards more traditional fund oversight for investors seeking diversified exposure to digital assets.

What Happened

21Shares introduced its crypto index ETFs in compliance with the 1940 Act. This legislation, which governs investment companies, imposes stricter regulations and oversight. By aligning its products with the 1940 Act, 21Shares aims to provide a more secure and regulated investment vehicle for digital assets. This initiative represents a significant shift in the landscape of cryptocurrency investment, as it seeks to integrate traditional financial principles into the rapidly evolving crypto market.

Impact on the crypto market

• Introduction of stricter regulatory oversight may enhance investor confidence in crypto investments.
• The move could attract institutional investors looking for compliance and security in digital asset exposure.
• Traditional fund frameworks may pave the way for broader acceptance of cryptocurrencies in mainstream finance.
• The new ETFs could lead to increased liquidity in the crypto market as more investors participate.
• This development may influence other firms to consider similar regulatory paths for their crypto products.

Updated: 11/14/2025, 6:34:57 AM