Prominent Crypto ETP Issuer 21Shares Suspends Several Offerings

• The company will keep offering its other products, which are in high demand.
• As of April 6th, traders will no longer have access to these suspended offerings.

Due to insufficient investor interest, 21Shares, a crypto ETP issuer located in Switzerland, would allegedly shut down five of its funds and delist another. According to Arielle Pennington, the company’s head of global communications, the company will keep offering its other products, which are in high demand.

Bloomberg reports that five of the company’s funds will be liquidated: 21Shares S&P Risk Controlled Ethereum Index (SPETH) Exchange Traded Product, 21Shares S&P Risk Controlled Bitcoin (SPBTC) Exchange Traded Product, 21Shares DeFi 10 Infrastructure (DEFII) Exchange Traded Product, 21Shares USD Yield (USDY) Exchange Traded Product, and 21Shares Crypto Layer 1 (LAY1) Exchange Traded Product.

Regulatory Scrutiny and Interest Rates

As of April 6th, traders will no longer have access. On June 12th, it will also stop trading the 21Shares Terra Classic ETP (LUNA). As their overall assets are worth less than $700.000, the low-interest rate is the primary motivator for the change.

Pennington said that interest in the ETPs is high and hasn’t waned and that January saw a lot of money coming in. In that month, the combined AUM of the 21Shares Bitcoin ETP (ABTC) and the 21Shares Ethereum ETP (AETH) topped $200 million.

Certain products, such as ETPs, have been badly impacted by the Federal Reserve’s strategy of raising interest rates, which may have contributed to the decline of the cryptocurrency market last year. Many scandals and collapses in the sector also play a role.

In addition to exchange-traded products, 21Shares has also shown its intention to launch a spot Bitcoin ETF on the Cboe BZX Exchange in collaboration with Ark Investment Management. Nonetheless, the US SEC turned down the proposal over two months ago, as it had in the spring of 2022.