21Shares Eyes Actively Managed Crypto ETPs as the Next Phase of Market Development
London, 24 March 2026 – Crypto‑asset manager 21Shares is betting that the next wave of exchange‑traded products (ETPs) will shift away from simple price‑tracking structures toward actively managed solutions. The firm’s president, Duncan Moir, told Cointelegraph that the nascent nature of digital assets makes them particularly amenable to active portfolio construction.
Why Active Management Matters for Crypto
Moir argues that because cryptocurrencies are still an emerging asset class, there is ample room for research‑driven and quantitative strategies to add value beyond mere market exposure. 21Shares combines bottom‑up analysis of individual tokens with top‑down, both discretionary and systematic, risk‑management techniques.
The firm has recently expanded its trading and portfolio‑management staff, bringing in professionals with expertise in markets, derivatives and algorithmic trading. According to Moir, “We’ve built a solid team that can deliver robust actively managed products.”
Active management is already a dominant force in traditional equities – assets under management in active ETFs worldwide were close to $1.8 trillion at the end of 2025, according to Morningstar and Goldman Sachs data. 21Shares believes a similar trajectory can be replicated in the crypto space as institutions seek more sophisticated exposure.
FalconX Integration Accelerates Product Roadmap
In October 2024, FalconX acquired 21Shares, providing the latter with enhanced execution capabilities, custodial services and a larger distribution network. Moir expects the partnership to speed up development of more complex offerings, particularly those that blend yield generation with active risk management.
Regional Demand Highlights Diverging Investor Profiles
Moir notes a clear split in crypto ETP appetite between the United States and Europe.
- United States: Investor interest remains concentrated around the largest cryptocurrencies – primarily Bitcoin and Ether – and products that simply track those assets.
- Europe: Institutional clients are more open to “next‑generation” assets, including layer‑2 solutions and application‑layer tokens, reflecting a more mature investor base that already holds core exposures and now seeks diversification.
The divergence, Moir says, stems from European institutions’ willingness to expand beyond the “layer‑1” narrative and explore higher‑yielding, thematic exposures.
New Yield‑Oriented Offering: the STRC ETP
In February 2026, 21Shares launched a Europe‑listed ETP tied to Strategy’s preferred stock (ticker STRC). The product provides exposure to a high‑yield instrument linked to 21Shares’ Bitcoin‑focused capital strategy. Early trading data shows strong demand across several jurisdictions, indicating appetite for yield‑bearing crypto assets that can be accessed through conventional brokerage platforms.
Market Trends: Staking and Hybrid Structures
The broader crypto ETP market is already evolving beyond passive price replication:
- Staking Integration: In October 2024, Grayscale introduced staking rewards on its Ether ETPs in the U.S., marking the first spot crypto ETFs to offer such yield. BlackRock followed in March 2025 with a Nasdaq‑listed Ethereum product that combines spot exposure with staking income, generating $15 million of volume on its debut day.
- Hybrid Products: 21Shares’ “Bitcoin‑and‑Gold” ETP, recently cross‑listed in London, blends digital and traditional assets, delivering strong risk‑adjusted returns and underscoring the appeal of multi‑asset thematic solutions.
Moir says the firm evaluates potential launches against three criteria: internal research insights, client demand, and macro‑level market trends. This framework can lead to either niche, single‑asset vehicles or broader thematic funds, depending on conviction and market feedback.
Analysis
The move toward active management in crypto ETPs reflects a natural progression as the asset class matures. Active strategies can:
- Mitigate Volatility: By adjusting exposures in response to market conditions, managers can potentially reduce drawdowns during bearish phases.
- Capture Yield Opportunities: Incorporating staking, lending or dividend‑style mechanisms adds an income component that pure price‑tracking funds lack.
- Differentiation for Institutional Investors: Institutions often demand bespoke risk controls, ESG considerations, and performance‑linked fee structures—features more readily built into active products.
However, active management also introduces higher fees and the need for robust operational infrastructure. The FalconX acquisition gives 21Shares a competitive edge in execution and custody, two critical components for delivering reliable active crypto products at scale.
Key Takeaways
- Active crypto ETPs are gaining traction as investors look for risk‑managed, yield‑enhancing alternatives to passive funds.
- 21Shares is positioning itself with a reinforced team and FalconX backing to launch sophisticated products in both the U.S. and Europe.
- Regional demand diverges: U.S. investors still favor flagship tokens, while European institutions are more receptive to newer layers and thematic exposure.
- Staking and hybrid structures are leading the market’s evolution, exemplified by recent launches from Grayscale and BlackRock.
- The STRC ETP’s early success signals strong appetite for high‑yield, actively managed crypto instruments accessible through traditional brokerage channels.
As the crypto market continues to deepen, actively managed exchange‑traded products could become the primary vehicle for institutional capital, offering a blend of exposure, risk control, and income generation not possible with pure passive solutions.
Source: https://cointelegraph.com/news/active-management-seen-as-next-phase-for-crypto-etfs-21shares-duncan-moir?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
