Key Points:
- 21Shares is closing its crypto products due to low investor demand.
- These products to close collectively have less than $700,000 in assets under management.
- The company sees significant demand for its other ETPs, and it recently had its second-best January ever.
Swiss ETP issuer 21Shares confirmed with Bloomberg that the company would close six encrypted ETPs due to low investor demand.
Among them, the five products of Crypto Layer 1 ETP (LAY1), DeFi 10 Infrastructure ETP(DEFII), S&P Risk Controlled Bitcoin Index ETP (SPBTC), S&P Risk Controlled Ethereum Index ETP (SPETH), and USD Yield ETP (USDY) will be closed after the market closes on April 6. Terra Classic ETP (LUNA) will be closed on June 12.
These six products collectively have less than $700,000 in assets under management. On the other hand, data from 21Shares showed that the company added $26.95 million in assets in January.
According to Arielle Pennington, director of global communications, 21Shares’ other ETPs are in high demand, and the business recently had its second-best January ever. She stated that the first month of the year had greater inflows than the same time in 2022. With approximately $44 million in assets, the record was held by January 2021.
Earlier in January, assets under management for two of its products, the Bitcoin ETP (ABTC) and the Ethereum ETP (AETH), surpassed the $200 million mark, bringing 21Shares’ total AUM to three.
Its debut fund, Crypto Basket Index ETP (HODL), which will continue to trade, has around $100 million in assets.
With the failure of Terra and, more recently, Sam Bankman-Fried’s FTX empire, last year proved to be a difficult year for digital assets.
As the Federal Reserve and other central banks boost interest rates to combat inflation, certain crypto goods have clashed. The recent failure of Silicon Valley Bank has heightened market volatility.
According to Coincu’s prior reports, the US Securities and Exchange Commission (SEC) denied Ark Investment Management and 21Shares’ application to jointly create a Bitcoin spot ETF for the second time in January of this year.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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