- 21Shares is bringing easier crypto investing to the U.S. with ETFs that track top coins and avoid complex K-1 tax forms.
- The FTSE Crypto 10 ETFs offer cap-weighted exposure to leading tokens, giving investors simple access to a dynamic crypto market.
- By excluding Bitcoin, one ETF targets real-use blockchain projects, helping investors focus on utility-driven digital assets.
21Shares has filed two crypto basket ETFs under the Investment Company Act of 1940. This marks a first for the crypto industry and a potential game-changer for U.S. investors.
The two products—FTSE Crypto 10 Index ETF and FTSE Crypto 10 ex-BTC Index ETF—aim to offer diversified exposure to digital assets. If approved by the SEC, they will simplify access to top cryptocurrencies through a cap-weighted, tax-efficient structure that uses Form 1099 instead of the complex K-1.
Broader Market Exposure Without Complexity
The FTSE Crypto 10 Index ETF tracks the ten largest cryptocurrencies globally. It uses a cap-weighted structure that adjusts based on market size. Larger assets naturally carry more weight, allowing the index to evolve as market leadership shifts. This approach reflects actual market performance rather than fixed allocations.
Meanwhile, the FTSE Crypto 10 ex-BTC Index ETF provides similar exposure—excluding Bitcoin. It focuses solely on tokens that bring utility beyond Bitcoin’s role as a store of value. Hence, it captures the growing segment of blockchain networks solving real-world problems.
Additionally, FTSE Russell and 21Shares perform a dual-layer research review before adding any asset to the index. This ensures only credible, high-impact tokens are included.
A Familiar and Tax-Friendly Structure
Unlike many crypto funds, these ETFs follow the 1940 Act rules. This structure offers investors a more familiar setup, especially for traditional finance participants. More importantly, it qualifies for 1099 tax reporting—removing the complexity of K-1 forms, which often deter retail investors.
Besides regulatory advantages, the partnership with ETF Solutions by Teucrium enhances product development and market rollout. It gives 21Shares the right infrastructure to meet rising investor demand.
