21Shares Unveils Two Crypto Index ETFs Under 1940 Act Structure

• First crypto index ETFs under the 1940 Act bring new regulated multi-asset exposure.
• TTOP and TXBC use securities-based structures instead of direct crypto holdings.
• Launch adds momentum to rising competition in multi-coin ETF filings and approvals.

21Shares has introduced two new crypto index exchange-traded funds that widen access to regulated digital asset exposures, marking the first time index-based crypto products have entered the U.S. market under the Investment Company Act of 1940.

The launch occurs during a period of heightened market uncertainty, as Bitcoin recently fell below $100,000 for the first time since June, prompting investors to reassess risk across the sector. Despite the volatility, the filings reflect a shift toward packaged exposure strategies that allow investors to track multiple digital assets through a single vehicle.

The products began trading on Thursday under the tickers TTOP and TXBC, representing the FTSE Crypto 10 Index and the FTSE Crypto 10 ex-Bitcoin Index, respectively. Both funds were developed with adviser Teucrium. Instead of holding cryptocurrencies directly, the ETFs obtain exposure through publicly traded securities intended to replicate the performance of the underlying digital-asset baskets.

TTOP charges a management fee of 0.50% and tracks a market-cap-weighted index comprising the ten largest cryptocurrencies, including Bitcoin, Ethereum, Solana, and Dogecoin. TXBC, which excludes Bitcoin, charges a 0.65% fee. According to the firms involved, the exclusion is designed to track networks built around blockchain-based use cases rather than Bitcoin’s macro-hedge function.

Regulatory Distinctions Set These ETFs Apart

Most crypto ETFs in the United States operate under the 1933 Securities Act, a regulation typically used for products linked to commodities and structures with higher risk classifications. The decision to launch TTOP and TXBC under the 1940 Act places them in a regulatory category associated with enhanced investor protections, including rules aimed at limiting conflicts of interest. The structure also aligns with preferences cited by certain professional investors who work with established fund standards and tax treatments.

Teucrium previously brought commodity-linked funds to market under the same framework, a track record that helped shape the design of the two new offerings.

A Growing Competitive Landscape

The debut follows an uptick in applications for multi-asset digital-asset ETFs. Before these two funds, only two multi-coin crypto index ETFs were available, both of which operated under the 1933 Act. Grayscale converted its Digital Large Cap Fund into an ETF in September, while Hashdex also launched a multi-asset product.

Additionally, filings from T. Rowe Price and Bitwise indicate continued interest in diversified crypto exposure, despite uneven flows into spot products this year.