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21Shares to Close 5 Crypto Funds and Delist Another as Investor Demand Falters

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According to a Bloomberg report, 21Shares, the issuer of cryptocurrency exchange traded products, is closing five funds and delisting another fund as investor d

21Shares to Close 5 Crypto Funds and Delist Another as Investor Demand Falters

According to a Bloomberg report, 21Shares, the issuer of cryptocurrency exchange traded products, is closing five funds and delisting another fund as investor demand weakens.

Cryptocurrency ETP provider 21Shares closes its funds due to reduced investment demand

Analysis based on this information:


21Shares, the Swiss-based issuer of cryptocurrency exchange traded products (ETPs), has reportedly decided to shut down five of its ETPs and delist another one, citing weak investor demand. This move comes after the company was forced to reduce the number of its ETPs last year due to the coronavirus pandemic’s impact on the market.

The closure of the five funds and delisting of another fund further emphasize the ongoing struggle that cryptocurrency markets have faced in recent months. The lackluster performance of crypto prices and market volatility have caused investors to shy away from these assets. Notably, Bitcoin and other digital currencies have seen dramatic swings in value in recent weeks, with prices rising and falling by thousands of dollars within days.

The affected ETPs are said to be focused on small-cap and out-of-favor assets, which may explain their lack of popularity with investors. The move by 21Shares is seen as a proactive step to conserve resources and refocus its efforts on promising ETPs that have more significant market demand.

Notably, this move comes as institutional interest in cryptocurrencies continues to grow. Many traditional financial institutions, such as Goldman Sachs and Morgan Stanley, have announced plans to offer cryptocurrency exposure to their clients in recent months. Furthermore, an increasing number of companies, including Tesla and Square, have added Bitcoin to their corporate balance sheets.

In conclusion, 21Shares’ decision to shut down five cryptocurrency ETPs and delist another fund is a sign of the choppiness and unpredictability of the crypto market. Still, it may also be seen as a forward-looking move to direct resources towards ETPs that show promise and benefit from growing retail and institutional interest.

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