Bitcoin News Today: 21Shares Files Two Crypto ETFs With SEC For US Market

21Shares, a leading digital asset management firm, has submitted two innovative cryptocurrency ETF filings to the United States Securities and Exchange Commission (SEC). The proposed ETFs, the 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF, are designed in collaboration with Teucrium ETFs and index provider FTSE Russell. These filings represent a strategic move to expand institutional access to digital asset portfolios within a regulated framework in the United States.

The 21Shares FTSE Crypto 10 Index ETF aims to track a market-cap-based basket of the ten largest cryptocurrencies, while its counterpart, the 21Shares FTSE Crypto 10 ex-BTC Index ETF, focuses on the top altcoins excluding Bitcoin. Both ETFs are structured under the Investment Company Act of 1940, providing a familiar regulatory framework that offers greater tax certainty and legal assurance compared to many existing crypto products. This regulatory structure could accelerate the mainstream adoption of crypto by the traditional finance sector.

Kristen Mierzwa, FTSE Russell Head of Digital Assets, emphasized the robust structure of the indices, which are designed for strategic asset allocation and precise pricing. The partnership with Teucrium ETFs, known for its compliance track record, is expected to facilitate the review process at the SEC. Federico Brokate, the head of the U.S. business at 21Shares, noted the growing interest among investors in diversified, regulatory-friendly access to crypto. The firm aims to meet this demand with ETF structures subject to regulatory approval.

The regulatory clarity, enhanced by legislative initiatives, has created a favorable environment for crypto tokenization and asset-backed instruments. This paradigm shift could provide a legitimate basis for organized crypto ETFs, allowing products like the proposed ones to be easily accommodated within existing financial market norms. Market watchers anticipate that the launch of these ETFs would significantly boost liquidity and capital flows into the crypto sector, particularly into tokens other than Bitcoin, thereby strengthening the digital asset ecosystem in the U.S.

If approved, these ETFs would mark a significant development in regulated crypto products under U.S. securities law. The filings suggest basket products to be traded under the Investment Company Act of 1940, which could set new precedents in institutional crypto investment. Bitcoin's dominant position in the crypto market, with over 60% market share, is notable. However, the non-Bitcoin ETF highlights the diversification of the portfolio by emphasizing key altcoins and new digital assets, which could attract increased investor interest and institutional entry.