Bitcoin News Today: First 40 Act Crypto ETFs Offer Regulated Diversification

21Shares has launched two new cryptocurrency index exchange-traded funds (ETFs) in the U.S., marking the first crypto index ETFs registered under the Investment Company Act of 1940 (40 Act). The 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC) aim to simplify access to the crypto market by offering diversified exposure to leading digital assets within a regulated framework according to CoinPaper.

The TTOP ETF tracks the FTSE Crypto 10 Select Index, a market-cap-weighted basket of the 10 largest cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). TXBC excludes Bitcoin and focuses on blockchain networks emphasizing real-world applications such as smart contracts and decentralized finance (DeFi). Both funds rebalance quarterly to reflect market changes, ensuring investors maintain exposure to evolving leaders in the crypto space.

The 40 Act structure distinguishes these products from most U.S. crypto ETFs, which typically operate under the riskier Securities Act of 1933 (33 Act). By adhering to the 40 Act's stricter governance and disclosure standards, 21Shares aims to enhance investor confidence and align with traditional ETF frameworks. Federico Brokate, Global Head of Business Development at 21Shares, emphasized that the move reflects client demand for "a simple, regulated way to access the market as a whole rather than choosing individual tokens" according to Globenewswire.

The ETFs charge 0.50% and 0.65% management fees for TTOP and TXBC, respectively. These fees are competitive with existing crypto products, though uptake for multi-coin index funds is expected to lag behind the explosive growth of single-coin Bitcoin ETFs. Duncan Moir noted that index products may initially attract institutional investors and financial advisers, who prioritize diversified exposure in a volatile market.

The launch comes as the crypto market navigates uncertainty, with Bitcoin dipping below $100,000 in late November amid rising risk aversion. Despite this, demand for regulated crypto products remains strong, with over $70 billion in assets under management for spot Bitcoin ETFs since their debut in early 2024. 21Shares' products join a growing but still nascent category of index-based crypto ETFs, including the Grayscale Digital Large Cap Fund (GDLC) and the Hashdex Nasdaq Crypto Index ETF (NCIQ), which also operate under the 33 Act according to Benzinga.

The firm partnered with Teucrium Trading to structure the ETFs and has also integrated FalconX's institutional-grade digital-asset services to support distribution and liquidity. This collaboration underscores 21Shares' strategy to expand its U.S. footprint while maintaining compliance with evolving regulatory expectations.