21shares sees active strategies shaping next phase of crypto ETFs

21shares president Duncan Moir sees shifting investor demand and evolving product strategies pushing crypto ETFs and ETPs beyond passive exposure.

Crypto asset manager 21shares sees actively managed exchange-traded products as the next phase of crypto investing, as the market matures beyond simple price-tracking funds.

He said the company combines bottom-up research on individual assets with quantitative and discretionary top-down strategies to manage risk and position portfolios, adding that 21shares has been expanding its portfolio management and trading teams to support more sophisticated products.

We’ve had to hire and build out the team with people who have different trading and portfolio management expertise, but now we have a solid team and we think we’ll be able to deliver strong actively managed products.

Active ETFs worldwide held nearly $1.8 trillion in assets at the end of 2025, according to data compiled by Morningstar and Goldman Sachs Asset Management.

Moir added that integration with FalconX, which , is expected to accelerate product development, particularly as the company expands into more complex offerings.

The interest is still concentrated in the larger coins in the US. In Europe, institutional clients are more interested in newer assets and the application layer beyond the layer-1s.

He attributed the divergence to a more mature investor base in Europe, where institutions that already hold Bitcoin (BTC) and Ether (ETH) are increasingly looking to expand their crypto allocations. 

Against that backdrop, linked to Strategy’s preferred stock (STRC), offering exposure to a high-yield instrument linked to the company’s Bitcoin-focused capital strategy. 

Moir said the product has seen strong early demand across multiple regions, reflecting investor appetite for yield-generating assets that are easier to access through traditional brokerage platforms.

Crypto ETPs evolve beyond passive exposure

As the crypto ETP and ETF market matures, issuers are moving beyond simple price tracking, with more complex structures emerging across the US and Europe.

One area gaining traction is staking, a process that allows investors to earn yield by locking up crypto assets to help secure blockchain networks. In October, Grayscale introduced staking across its ETPs, making its Ether funds the first US-listed spot crypto ETFs to offer staking rewards while extending the feature to its Solana trust pending ETP approval.

In March, asset manager that incorporates staking, combining spot Ether exposure with yield generation. The fund recorded $15.5 million in trading volume on its first day.

As new exchange-traded products come to market, Moir said 21shares evaluates potential launches based on three factors: internal research, client demand and broader market trends, with its research team identifying early opportunities and institutional feedback helping gauge interest.

“The third is where we see trends going in the future,” he said, adding that this can result in either niche, single-asset products or broader thematic offerings depending on conviction.

Moir pointed to the company’s as an example of that approach in practice.  While recently cross-listed in London, the product has been live for four years and, he said, has delivered some of the strongest risk-adjusted returns among European ETPs. 

From a portfolio perspective, the combination “just makes total sense,” he added, citing its diversification benefits across Bitcoin and gold.