Breaking News: 21Shares Enters the Crypto ETF Game

In a bold and strategic move, 21Shares has officially filed for two innovative crypto index ETFs, opting for a speedier approval route under the Investment Company Act of 1940. This decision is predicted to help the firm circumvent potential delays from the SEC, positioning 21Shares ahead in the competitive world of cryptocurrency ETFs.

What’s Inside the New ETFs?

Announced on July 18, the funds aim to track the performance of the top 10 cryptocurrencies and the leading programmable blockchains, going beyond just Bitcoin to encompass broader real-world applications.

Why Choose the 1940 Act?

Unlike the conventional and often sluggish 1933 Act, which can take several months for approval, the 1940 Act offers a noticeably quicker path to market. This strategic shift is already attracting attention, as other potential issuers, including big players like Grayscale and Bitwise, await approval under the older act.

Market Predictions and SEC Timelines

Industry experts have already begun to speculate about the timeline for ETF approvals. With Grayscale's previous conversion granted but then halted, many anticipate significant delays until the SEC finalizes a standardized framework for crypto ETFs. The approval process for new applications could stretch well into the fall, thus highlighting the urgency of 21Shares' timely filing.

A Solution to Investor Demand

Federico Brokate, head of U.S. operations at 21Shares, emphasized the critical role these ETFs will play in offering investors diversified access to digital assets. He noted, "Investor appetite for broad and easily-accessible ways to engage with the burgeoning digital asset market is rapidly increasing."

The Futures of Crypto ETFs: What Lies Ahead?

While the market is rife with anticipation, Bloomberg projects a 95% probability of approval for new index products, leaving many eager to see how swiftly the SEC will act on 21Shares’ application. With the potential for rapid growth in the cryptocurrency space, all eyes are on how this will shake up the investment landscape.