21Shares has filed for two cryptocurrency index ETFs under the expedited process of the 1940 Act, avoiding delays from regulatory agencies.
21Shares is entering the cryptocurrency index ETF race with a strategy for faster approvals, while also offering funds that track the top 10 blockchains, expanding diverse investment options for investors.
MAIN CONTENT
21Shares filed a cryptocurrency index ETF under the Investment Company Act of 1940 to expedite the review process.
Two ETFs track the top 10 blockchains, one fund focuses on a viable program beyond Bitcoin.
Choosing the 1940 Act helps avoid long delays from the SEC, taking advantage of the strong growth market.
Why did 21Shares choose the Investment Company Act of 1940 to apply for the ETF?
21Shares chose the Investment Company Act of 1940 to shorten the licensing time compared to the traditional Securities Act of 1933, which takes many months to approve.
The 1940 Act is seen as a faster and more efficient option, having previously helped the REX-Osprey Solana ETF get expedited approval. This is a way to avoid long delays from the SEC, as funds like Grayscale and Bitwise are still awaiting approval under the 1933 Act.
ETF issuers are not waiting around for the SEC to figure things out regarding the 'crypto ETF framework'.
Nate Geraci, ETF Store expert, July 2025
What index tracking ETFs has 21Shares launched?
Two ETFs from 21Shares will track the top 10 leading blockchains. One fund focuses on top cryptocurrency assets (21Shares FTSE Crypto 10 Index ETF), while the other focuses on the top 10 blockchains capable of practical application beyond Bitcoin.
This strategy helps investors gain more diverse access to quality cryptocurrency assets, aligning with the current development trends in the blockchain field.
Investors are increasingly looking for diversified and easy-to-access ways to participate in the long-term growth of digital assets.
Federico Brokate, U.S. Business Director, 21Shares, July 2025
What is the status of cryptocurrency index ETF approvals in the United States?
The SEC often takes a long time to review ETF applications under the Securities Act of 1933, causing many organizations to face approval delays, such as Grayscale and Bitwise. Currently, only the Grayscale Digital Large Cap Fund has been approved, but trading has been temporarily halted until the SEC finalizes the standards for cryptocurrency ETFs.
According to Bloomberg, the likelihood of approval for index ETF products is very high (95%), but the processing speed still depends on new SEC regulations.
Source: Bloomberg
What are the benefits of choosing the expedited approval path under the 1940 Act?
Choosing the 1940 Act allows ETF issuers like 21Shares to accelerate their product market launch. This is a significant competitive advantage as the demand for diversified, convenient funds continues to grow.
As a result, 21Shares also has the opportunity to get ahead of investors seeking access to the top blockchains without waiting long.
Frequently Asked Questions
What is a cryptocurrency index ETF?
A cryptocurrency index ETF is an investment fund that tracks a portfolio of cryptocurrency assets to provide performance corresponding to the market according to a benchmark index.
Why did 21Shares choose the 1940 Act instead of the 1933 Act?
The 1940 Act provides a faster approval process, allowing the ETF to launch timely, without being delayed by the SEC under the 1933 Act.
Which indexes do the two ETFs from 21Shares track?
The first fund tracks the top 10 leading cryptocurrency assets, while the second fund includes 10 blockchains capable of practical application beyond Bitcoin.
How much faster is the ETF approval time under the 1940 Act?
Typically, the 1940 Act helps shorten the approval process from several months to just a few weeks or months, depending on the specific case.
What is the SEC's stance on cryptocurrency ETFs?
The SEC is cautious and prioritizing the establishment of a standardized legal framework for cryptocurrency ETFs to protect investors and promote sustainable development.
Source: https://tintucbitcoin.com/21shares-ra-mat-etf-tien-dien-tu/
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