21Shares Achieves $1 Billion in Crypto ETP Assets

Jumping Over the Billion Mark

In a jaw-dropping twist in the financial world, Switzerland-based 21Shares has doubled its assets under management (AUM) in a mere two weeks, rocketing past the $1 billion mark. This increase is not just a small bump; it signifies a greater acceptance of cryptocurrency among institutional investors who are now flocking to crypto exchange-traded products (ETPs) like moths to a flame.

The Meteoric Rise Explained

CEO Hany Rashwan attributed this unexpected leap to a couple of core factors:

The growing institutional appetite for crypto assets.
The accessibility of their products on regulated European exchanges.

More specifically, Rashwan explained how institutional investors can easily dive into the crypto world by employing the International Securities Identification Number (ISIN). Think of it as a VIP pass that allows them to dip their toes into the wild waters of cryptocurrency without having to swim in the unregulated pool.

The Power of Institutional Investment

With the demand from wealth managers, private banks, and family offices surging, a number of entities are now seriously considering crypto allocations. Rashwan remarked, “It is rapidly becoming judicious for many wealth managers to allocate to crypto assets.” Who knew that the hype would turn into hard cash so quickly?

Spotlight on 21Shares’ Products

Buckle up, because the crux of all this wealth comes from the 21Shares Binance BNB ETP (ABNB), which has become the crown jewel of its portfolio. It tracks Binance Coin (BNB), which, after recently securing its place as the third-largest cryptocurrency, is contributing heavily to the AUM. For context, the ABNB was still lagging behind the more established Bitcoin ETP (ABTC), which holds around $272 million, while ABNB reported around $214 million.

A Legacy of Innovation

Formerly known as Amun AG, 21Shares has been ahead of the curve since its inception. They launched the world’s first multicrypto ETP back in November 2018, changing the way crypto was viewed in traditional finance. Since then, they have been on a mission to diversify their offerings, recently creating the world’s first ETP based on Polkadot’s DOT.

In a market that has often been viewed with skepticism, 21Shares is showing that, along with dinosaurs like Bitcoin, there’s a diverse ecosystem worth diving into. Buckle up for what is likely to be an exciting ride ahead!