By Silin Chen
Cryptocurrency exchange-traded products (ETP) provider 21Shares is to shut six ETPs due to low investor demand.
The Switzerland-based company will close five of its ETPs after the April 6 trading day. All of the five ETPs have existed for less than a year.
The five products include the 21Shares Crypto Layer 1 ETP (LAY1), the 21Shares DeFi 10 Infrastructure ETP (DEFII), 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH) and the 21Shares USD Yield ETP (USDY).
The sixth product, 21Shares Terra Classic ETP (LUNA), was listed in January 2022 and will close after June 12.
The to-be-closed six products have less than $700,000 in total assets, accounting for less than 0.6 percent of its total assets under management.
According to a spokesman of 21Shares, ETP closure like this is just one of the “routine” and “standard” practices of the industry, suggesting that the company is actively integrating its strategy and simplifying its products in the changing market.
In late 2022, 21Shares also closed its 21Shares FTX Token ETP, which was affected by the collapse of crypto exchange FTX.
The spokesman also said that the firm recently experienced its second-highest January since its foundation in terms of net new assets, with its flagship Bitcoin and Ethereum funds each surpassing $200 million in assets under management that month. The Bitcoin price rally largely contributed the rising in 21Shares’ assets.
“While these ETPs saw relatively low demand, we’re seeing continuous strong demand in our other products,” said the spokesman.
21Shares was founded in 2018 and has over 30 products now. As of March 30, 2023, the company has over $1.2 billion in assets under management.
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