Crypto Investment Products Are Moving Toward Active Management
(Source: iShares)
21Shares, a crypto asset management firm, observes that as the digital asset market evolves, investment products are undergoing a structural shift. Unlike earlier funds that mainly tracked prices, the market is now leaning toward actively managed exchange-traded products (ETPs).
President Duncan Moir noted in an interview that crypto assets remain in their early stages, making them particularly suitable for active investment management strategies.
He explained that the firm's current investment approach incorporates multiple strategies, such as:
These methods enable the team to adjust asset allocation and manage risk with greater flexibility.
Investment Team Continues to Expand
To support increasingly complex investment products, 21Shares has expanded its investment and trading team in recent years. Moir stated that the company has recruited professionals with diverse market backgrounds, including trading strategy experts, portfolio managers, and quantitative analysts. By building a comprehensive investment team, 21Shares aims to launch more products with active management capabilities.
Rapid Growth in the Active ETF Market
The actively managed investment product market is experiencing rapid global growth. According to Morningstar and Goldman Sachs Asset Management, by the end of 2025, global assets in active ETFs will approach $1.8 trillion, reflecting rising investor demand for more flexible investment strategies.
Accelerating Product Development Through Integration With FalconX
On the innovation front, 21Shares is integrating with trading platform FalconX. FalconX completed its acquisition of 21Shares in October 2025. This partnership is expected to accelerate the development of new products, especially more complex crypto investment tools.
Differences in Investment Demand Between the US and Europe
Moir pointed out significant regional differences in demand for crypto ETPs.
US Market
Investor demand centers on major crypto assets such as Bitcoin and Ethereum.
European Market
European institutional investors focus more on emerging crypto assets and application-layer projects, expanding beyond foundational blockchain assets.
This divergence is partly due to the mature investor structure in Europe, where many institutions already hold BTC and ETH and are now seeking new allocation opportunities.
New Product: Linking Bitcoin Strategy Returns
21Shares has recently introduced a new exchange-traded product. This product is tied to the company’s Strategy preferred shares (STRC), giving investors access to high-yield assets associated with its Bitcoin capital strategy.
Moir reported strong initial demand across multiple regions, indicating growing interest in yield-driven crypto investment tools.
Crypto ETPs Are Transitioning From Passive to Active Investment
As the market matures, the design of crypto ETFs and ETPs is becoming increasingly diverse.
A key development is staking yield mechanisms.
For example:
BlackRock’s Ethereum product, listed on Nasdaq, saw first-day trading volume reach $15.5 million, highlighting market enthusiasm for products with integrated yield features.
(Source: iShares)
Three Key Evaluation Criteria for Launching Investment Products
When designing new products, 21Shares evaluates three primary factors:
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Internal research findings
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Institutional client demand
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Future market trends
Moir stated that these criteria sometimes lead the company to launch single-asset products or to develop more thematic investment solutions.
Bitcoin and Gold Combination Strategy
A notable 21Shares product is an ETP combining Bitcoin and gold. This product has been in operation for about four years and was recently cross-listed on the London market.
Moir believes that from a portfolio perspective, combining Bitcoin and gold is logical, as both assets provide diversification and offer attractive risk-adjusted returns.
Summary
As the crypto market matures, investment tools are shifting from simple price-tracking to more complex, strategy-driven products. 21Shares sees actively managed ETPs as a key future direction for crypto investment. Through yield mechanisms, asset allocation, and diversified strategies, these products offer investors greater flexibility. As institutional capital continues to flow into the market, crypto financial product design may increasingly resemble traditional asset management models.
