Glocal Project

Monat: Februar 2021

US$1bn in assets under management

Swiss crypto ETP firm: US$1bn in assets under management

Swiss crypto-ETP firm 21Shares now manages over US$1 billion in crypto-ETP assets.

21Shares, a Swiss provider of cryptocurrency exchange-traded products (ETPs), has seen its assets under management (AUM) grow by 100 percent in the past two weeks.

The company announced on Monday that 21Shares had crossed the 1 billion mark in assets under management across its 12 diversified crypto-asset ETPs. CEO of 21Shares Hany Rashwan said the company has seen a sharp rise in its crypto-ETP products recently, doubling its assets under Crypto Trader management in less than two weeks. The company had earlier announced that 21Shares had crossed the $500 million mark in assets under management on 8 February.

According to the announcement, the massive increase in 21Shares‘ crypto ETP business is mainly due to the rapid adoption of crypto by institutional investors and the availability of the products on regulated European exchanges.

Rashwan said institutional investors can invest in 21Shares‘ crypto ETPs by using the International Securities Identification Number (ISIN), which is a global standard. This is used to identify specific securities such as bonds, equities, derivatives and others:

„With such institutional demand for exposure to cryptocurrencies through an ISIN, we have now reached over $1 billion in less than two weeks after hitting the $500 million mark in AUM. For many asset managers, private banks, family businesses and individuals, it makes more and more sense to invest in crypto assets.“

According to a product breakdown in the announcement, most of 21Shares‘ total AUM comes from the 21Shares Binance BNB ETP (ABNB). This is an ETP that tracks the investment results of Binance Coin (BNB). BNB’s dominant share of total AUM comes on the back of Binance Coin’s recent rise to become the world’s largest cryptocurrency on 19 February.

As of 18 February, ABNB was still behind the 21Shares Bitcoin ETP or ABTC

It had an AUM of around $214 million, while ABTC AUM came in at $272 million, according to official records on 21Shares‘ website.

The former Amun AG, now called 21Shares, is known for launching the world’s first multi-crypto ETP. The product was listed on the SIX Swiss Exchange in November 2018. In just over two years since launching its first crypto ETP, 21Shares has actively diversified its crypto ETP offering, increasing its assets under management by 200 times. In early February, 21Shares launched the world’s first ETP based on Polkadot (DOT).