21Shares has launched the first-ever crypto index ETFs in the United States under the SEC’s ’40 Act, marking a major shift in regulated access to diversified digital assets.
Key Takeaways
- 21Shares introduced two new crypto index ETFs, TTOP and TXBC, under the Investment Company Act of 1940, offering regulated exposure to top digital assets.
- These ETFs are the first of their kind in the U.S., diverging from the usual ’33 Act framework typically used for crypto products.
- The ETFs track FTSE Russell indexes, rebalancing quarterly to reflect the top 10 cryptocurrencies by market cap.
- 21Shares partnered with Teucrium and recently joined forces with FalconX to expand its global presence and operational capabilities.
What Happened?
21Shares, a major player in the digital asset investment space, has broken new ground by launching the first cryptocurrency index ETFs in the U.S. regulated under the ’40 Act. The products, named the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC), give investors simplified access to a basket of top crypto assets within a familiar, SEC-regulated fund structure.
Bypass the headache, frontrun the future.
— 21shares US (@21shares_us) November 13, 2025
Forget having to navigate multiple wallets, coins, chains, and bridges- we’ve just launched our first index crypto funds in the U.S.
There’s now a simpler way to get diversified exposure to crypto in your brokerage account:
– $TTOP:… pic.twitter.com/epEzG0Rasx
A First for Crypto Indexing Under the ’40 Act
These ETFs are the first crypto index funds in the U.S. structured under the Investment Company Act of 1940, which is the same legal framework used for traditional mutual funds and ETFs. This marks a major regulatory milestone because most existing crypto funds in the U.S. were launched under the Securities Act of 1933, a framework seen as more suitable for riskier assets and less regulated structures.
By aligning with the ’40 Act, these new products come with greater investor protections, improved disclosure rules, and better governance standards, increasing their appeal to institutional and professional investors.
Duncan Moir, president of 21Shares, emphasized this shift, stating, “’40 Act funds are really the gold standard” for professional investors, especially given the tax treatment and regulatory oversight they provide.
ETF Details and Market Strategy
- TTOP (FTSE Crypto 10 Index ETF) has a management fee of 0.50% and tracks a market cap-weighted index of the top 10 crypto assets, including Bitcoin, Ethereum, Solana, and Dogecoin.
- TXBC (FTSE Crypto 10 ex-BTC Index ETF) charges 0.65% and excludes Bitcoin to focus on blockchain platforms with practical applications beyond Bitcoin’s store-of-value use case.
The indexes are created by FTSE Russell and rebalance quarterly, allowing the ETFs to automatically adapt to changes in the digital asset landscape without investors needing to manually adjust their holdings.
Both products are supported by Teucrium, a seasoned ETF advisor with expertise in alternative and commodity markets. 21Shares will obtain exposure to the underlying assets by investing in its own ETPs listed in Europe.
Targeting Institutional Demand in a Volatile Market
While spot Bitcoin ETFs like BlackRock’s IBIT have attracted billions since launching in 2024, Moir expects a slower initial uptake for multi-coin index funds, which he believes are better suited to financial advisers and professional investors who want diversified exposure rather than betting on a single asset.
He added that the product launch comes during a volatile crypto environment, where Bitcoin briefly dipped below $100,000 amid growing market uncertainty.
Federico Brokate, 21Shares’ Global Head of Business Development, noted:
A Step Forward for 21Shares and Crypto Regulation
This launch also builds on 21Shares’ strategic expansion, especially following its recent acquisition by FalconX, one of the world’s leading digital asset prime brokers. The combination allows 21Shares to tap into FalconX’s global infrastructure while maintaining independent operations.
21Shares’ move reflects a broader trend of crypto firms pushing beyond spot products into more diversified, professionally structured offerings. FTSE Russell’s Fiona Bassett, CEO, added, “We’re delighted to work with 21Shares on these first-of-their-kind crypto index ETFs.”
CoinLaw’s Takeaway
In my experience, this is a landmark moment for crypto investment in the U.S. I’ve watched the ETF space closely, and the move from 21Shares to launch regulated, diversified crypto funds under the ’40 Act is a game-changer. Most crypto ETFs so far have been laser-focused on Bitcoin, but now we’re seeing a shift toward wider asset exposure with regulatory robustness. I found the collaboration with FTSE Russell and Teucrium especially smart, as it blends innovation with trusted legacy institutions. This is a clear signal that crypto is evolving into a more mature investment class, and institutional adoption is bound to follow.
