Crypto25 March, 20262 min read
21Shares shifts crypto ETFs toward active strategies.
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Crypto ETFs shift from passive tracking to actively managed strategies. Market expanding into complex structures and non-price-tracking exposure.
Market Strategy Shift
21Shares is fundamentally reshaping the crypto ETF market by shifting focus from passive products to active management strategies. According to 21Shares President Duncan Moir, digital assets represent an asset class in the early stages of growth where active management provides superior structural advantages. This strategic shift reflects a broader industry recognition that as the crypto market matures, passive tracking alone becomes insufficient for achieving meaningful differentiation.
“Digital assets are an asset class in the early stages of growth, and the structure is better suited to active management.”
The global active ETF market, which totaled approximately $1.8 trillion in assets as of 2025, demonstrates the viability and growing acceptance of active management strategies. 21Shares is positioning itself at the forefront of applying these active management principles specifically to digital assets.
Complex Product Evolution
The crypto ETF market is witnessing significant evolution toward more complex product structures beyond basic price tracking. In October, Grayscale introduced staking across its exchange-traded products, making its Ether funds the first US-listed spot crypto ETFs to offer staking rewards. BlackRock launched a Nasdaq-listed Ethereum product in March that incorporates staking, combining spot Ether exposure with yield generation capabilities.
This BlackRock product demonstrated strong market reception by recording approximately $15.5 million in trading volume on its first day of trading. These developments signal a broader industry movement toward more sophisticated financial instruments that provide both price exposure and additional yield opportunities.
Active Management Approach
21Shares has implemented a sophisticated approach to active management that combines bottom-up research with top-down strategic analysis. The company manages portfolios through a dual methodology: detailed analysis of individual assets combined with macro-environmental considerations. This approach has necessitated substantial organizational growth, with 21Shares hiring professionals with diverse trading and portfolio management expertise.
“21Shares said it manages portfolios by combining bottom-up research based on analysis of individual assets with top-down strategies that reflect the macro environment, and has expanded its trading and asset-management staff to support this.”
Company representatives indicate this team development has resulted in 'a solid team' capable of delivering strong actively managed products. The integration with FalconX, which acquired 21Shares in October 2025, is expected to further enhance product development capabilities.
Product Development Criteria
21Shares employs a comprehensive evaluation framework for potential product launches based on three critical factors. The company's research team identifies early-stage opportunities within the digital asset space. Institutional feedback mechanisms help gauge investor interest and requirements for new products.
Market trend analysis determines whether to develop niche, single-asset products or broader thematic offerings based on conviction levels. This strategy was exemplified through the company's Bitcoin-and-gold ETP, which has delivered strong risk-adjusted returns among European exchange-traded products.
Future Market Position
The integration with FalconX and the maturation of the crypto ETF market are creating favorable conditions for 21Shares' expansion. Demand for crypto ETPs and ETFs varies significantly by region, but the trend toward sophisticated products remains consistent. The combination of 21Shares' expertise with FalconX's infrastructure is expected to accelerate product development and enhance offering complexity.
“Moir added that integration with FalconX, which acquired 21shares in October, is expected to accelerate product development, particularly as the company expands into more complex offerings.”
As the crypto market evolves toward greater institutional adoption, companies like 21Shares are well-positioned to capture growing market share. The company's ability to adapt to regional variations while maintaining a cohesive global strategy will be crucial for success.