21Shares Launches Cronos ETP, Driving Altcoin Fund Trend

Generated by AI AgentCoin World
Tuesday, May 6, 2025 2:13 pm ET1min read
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21Shares, a prominent investment firm, has launched an exchange-traded product (ETP) that tracks the price of

Cronos
, an altcoin backed by Crypto.com. This move is part of a broader trend where issuers are increasingly aiming to offer altcoin-based funds to investors in the U.S. The ETP provides investors with exposure to Cronos without the need to directly hold the asset, facilitating investments into a blockchain ecosystem that aims to drive real-world crypto adoption.

Cronos is the native token of Crypto.com, enabling users to interact with decentralized finance platforms,

NFTs
, and Web3 applications. It is compatible with both the Ethereum and Cosmos networks, making it a versatile asset within the crypto ecosystem. The launch of the Cronos ETP by 21Shares is seen as a strategic move to offer investors easy and regulated exposure to a blockchain ecosystem that is pioneering the future of Web3.

Mandy Chiu, the head of financial products development at 21Shares, highlighted the significance of this launch, stating that it provides investors with a regulated way to access a blockchain ecosystem that is driving real-world adoption and innovation in the Web3 space. This debut comes at a time when there is a growing appetite among investors for investment vehicles that track the prices of popular cryptocurrencies.

The launch of the Cronos ETP is part of a larger trend where issuers are flooding federal regulators with applications for a variety of altcoin-based funds. This trend is driven by the success of spot bitcoin ETFs, which now manage over $100 billion in assets, and Ethereum-based funds, which control over $7 billion in assets. With the Securities and Exchange Commission becoming more receptive to the crypto industry, issuers are hopeful of replicating these successes with funds tracking other digital assets such as Solana, AVAX, and Sui.

Cronos has also gained traction with asset managers, with notable developments such as the announcement by Trump Media and Technology Group in March. The company, backed by former U.S. President Donald Trump, plans to create ETFs tracking the prices of tokens such as Cronos and Bitcoin in partnership with centralized crypto exchange Crypto.com. This announcement led to a significant price jump for Cronos, underscoring its growing relevance in the crypto market.