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21Shares shut 6 crypto ETPs as bear market bites

21Shares shut 6 crypto ETPs as bear market bites

21Shares, the issuer of cryptocurrency exchange-traded merchandise, is about to shut six encrypted exchange-traded merchandise (ETPs), all of which have been open for lower than a 12 months.

21Shares shut 6 crypto ETPs as bear market bites

Citing low investor demand, the Switzerland-based issuer is shuttering Crypto Layer 1 ETP (LAY1), DeFi 10 Infrastructure ETP(DEFII), S&P Threat Managed Bitcoin Index ETP (SPBTC), S&P Threat Managed Ethereum Index ETP (SPETH), USD Yield ETP (USDY) and Terra Basic ETP (LUNA).

The agency issued obligatory redemption notices on the related product pages, exercising its proper to terminate the merchandise after 90 consecutive days of buying and selling with lower than $100 million property beneath administration (AUM).

In a shareholder discover, the agency mentioned the six ETPs collectively have lower than $700,000 in property beneath administration. In accordance with 21Shares, the corporate added $26.95 million in property throughout January in comparison with the $26.73 million in the identical interval final 12 months.

“It’s a routine/commonplace apply within the ETP business. Whereas these ETPs noticed comparatively low demand, we’re seeing steady sturdy demand in our different merchandise. In reality, we closed out our second-strongest January in firm historical past this 12 months,” an organization spokesperson advised CoinDesk.

The transfer by 21Shares, which launched the world’s first crypto ETP in 2018, comes because the crypto winter has deterred asset managers from launching autos for his or her shoppers to get entry to digital property.

21Shares, as soon as had greater than $3 billion in property beneath administration (AUM), has been making an attempt to construction a product that regarded, from an institutional perspective, as shut as potential to a conventional ETF. A 12 months in the past, the agency’s providing boasted 26 cryptocurrency ETPs together with the world’s solely ETPs monitoring Binance, 4 Crypto Index Baskets. Two of them are designed for buyers who need to earn staking rewards (Tezos and Solana).

The crypto ETP issuer, which beforehand filed for a spot bitcoin ETF in the US, faucets UK infrastructure supplier Copper for its custody and staking necessities. Its merchandise are listed on 10 regulated European and Swiss buying and selling exchanges.