13 days ago 1 min read

Owing To Low Investor Demand, 21 Shares Will Discontinue 6 Crypto ETPs

21 shares-bitcoin-cryptocurrents

Swiss ETP issuer 21Shares informed Bloomberg that six encrypted ETPs would be discontinued due to a lack of investor interest.

The market will close on April 6 and the following five ETPs will be discontinued: 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). On June 12, Terra Classic ETP (LUNA) will be shut down.

The total assets managed for these six items is less than $700,000. Yet, based on information from 21Shares, the business added $26.95 million in assets in January.

Director of global communications Arielle Pennington claims that there is a high demand for 21Shares' other ETPs and that the company recently experienced its second-best January ever. She claimed that more money came in than at the same period in 2022 during the first month of the year. By January 2021, the record was held with assets of about $44 million.

The Bitcoin ETP (ABTC) and the Ethereum ETP (AETH), two of its products, both reached $200 million in assets under management earlier in January, increasing the total AUM for 21Shares to three.

Its first fund, Crypto Basket Index ETP (HODL), has about $100 million in assets and will keep trading.

The collapse of Sam Bankman-FTX Fried's enterprise and Terra, which occurred earlier this year, made last year a challenging year for digital assets.

Some crypto products have battled when the Federal Reserve and other central banks raised interest rates to fight inflation. Market volatility has increased as a result of Silicon Valley Bank's recent failure.

In January of this year, the US Securities and Exchange Commission (SEC) rejected Ark Investment Management and 21Shares' request to jointly establish a Bitcoin spot ETF for the second time.

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