The cryptocurrency investment company 21Shares stated that it would immediately stop providing six exchange-traded products (ETPs).
According to a spokeswoman for the corporation, the decision was made after the organization decided that there was a lack of demand for these particular products. Five of the six items that are going to be discontinued will stop being sold on April 6. These exchange-traded products include the
- 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH),
- 21Shares Crypto Layer 1 ETP (LAY1),
- 21Shares DeFi 10 Infrastructure ETP (DEFII),
- 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), and
- 21Shares USD Yield ETP (USDY).
These exchange-traded products include the On the other hand, trading of the final product, 21Shares Terra Classic ETP (LUNA), will remain active until June 12 of this year.
ETP Provider 21Shares Downplays the Importance of the Decision
In the meantime, the company maintains that the decision to cease production of certain of its products is not that big of a deal.
A spokesman for the company stated that choices similar to this one are reasonably regular in the ETP business.
In addition to this, the products in concern have a very low demand in comparison to the demand for other products, which can be fulfilled by other suppliers.
In order to put the preceding remark into perspective, it should be noted that the total assets under management (AUM) for all six closures is less than $700,000.
The spokesperson also brought up the fact that the other product lines are currently doing well in sales, which was another point of emphasis for her.
As a result, the company believes that it is more important to concentrate its efforts on these other goods at this time. The following is an excerpt from an email that the spokeswoman wrote:
In contrast, the demand for these ETPs was comparatively modest, but the demand for our other products remains consistently high.
According to the company spokesman, 21Shares set a new benchmark in terms of net new assets during the first month of this year.
Despite this, January 2018 was just the company’s second-best January in its entire existence, according to what it saw this year. That is, given that the company didn’t begin operations until 2018.
The net new assets that 21Shares added in January was $26.95 million, more than the amount it reported for the same month last year, which was $26.73 million.
In spite of this, the month of January 2021 is still the record-holder for the corporation, with approximately $44 million in assets.
In the meantime, it is important to note that the assertions that its other items are performing well are warranted, and should be mentioned.
Its Ethereum Exchange Traded Product (AETH) and 21Shares Bitcoin Exchange Traded Product (21Shares Bitcoin ETP) both reached $200 million in assets under management, making them only the second and third products ever to reach that milestone.
Bloomberg was the first media outlet to break (1) the story that 21Shares will be terminating its ETPs.