What Is 21Shares

Overview

21Shares is a pioneering financial technology company specializing in cryptocurrency-based exchange-traded products (ETPs). Founded in 2018 and based in Switzerland, it focuses on creating regulated, transparent, and secure investment vehicles for digital assets. These ETPs are designed to provide institutional and retail investors with exposure to cryptocurrencies like Bitcoin and Ethereum without the need to directly hold or store digital coins.

The company has emerged as a major player in the European digital asset space, offering physically backed ETPs that track the performance of major cryptocurrencies. By listing on traditional stock exchanges, 21Shares enables investors to buy and sell shares through standard brokerage accounts, enhancing accessibility and regulatory compliance.

• First product launch: The 21Shares Bitcoin ETP (ABTC) debuted in June 2019 on the SIX Swiss Exchange, becoming one of the earliest regulated crypto ETPs in Europe.
• Regulatory framework: All 21Shares ETPs are authorized under Swiss and EU financial regulations, providing a level of oversight uncommon in the crypto sector.
• Physical backing: Each ETP is fully backed by the actual cryptocurrency it tracks, held in cold storage with institutional-grade custodians like Coinbase Custody.
• Global expansion: In 2023, 21Shares rebranded from Amun, its former name, to streamline its international product offerings and strengthen brand recognition.
• Product diversity: The firm offers ETPs tied to Bitcoin, Ethereum, Solana, and diversified crypto baskets, catering to varied investor risk profiles.

How It Works

21Shares ETPs function similarly to traditional exchange-traded funds but are specifically engineered for digital assets. Investors buy shares on public stock exchanges, and each share represents a fractional ownership of the underlying cryptocurrency held in secure custody.

• Creation and Redemption: Authorized participants can create or redeem ETP shares in large blocks, ensuring the market price stays closely aligned with net asset value.
• Physically Backed: Each share is backed 1:1 by actual cryptocurrency; for example, ABTC holds real Bitcoin in cold storage, audited monthly.
• Trading Accessibility: Shares trade on regulated exchanges like Xetra and SIX under ticker symbols such as ABTC and AETH, accessible via standard brokerage platforms.
• Expense Ratios: Fees range from 0.95% to 2.5% annually, depending on the ETP, with lower fees for single-asset products.
• Transparency: Daily publication of holdings and net asset value ensures investors can verify the ETP’s underlying assets and performance.
• Security: Cryptocurrency reserves are stored with regulated custodians using multi-signature wallets and offline storage to prevent unauthorized access.

Comparison at a Glance

Below is a comparison of 21Shares ETPs with similar products from competing issuers, highlighting key differences in structure, fees, and availability.

The table illustrates 21Shares’ leadership in early market entry and competitive fee structures. Its ETPs consistently rank among the most liquid and trusted in Europe, benefiting from strong regulatory oversight and transparent operations. The rebranding from Amun to 21Shares has further consolidated its product line under a unified, globally recognized brand.

Why It Matters

21Shares plays a critical role in bridging traditional finance with the emerging digital asset economy. By offering regulated, exchange-listed ETPs, it lowers the barrier to entry for mainstream investors and institutions wary of direct crypto ownership.

• Democratizes access: Retail investors can gain exposure to crypto through familiar brokerage accounts without managing private keys or wallets.
• Enhances security: Institutional-grade custody reduces the risk of theft or loss compared to self-hosted wallets.
• Promotes transparency: Daily reporting of holdings builds trust and aligns with financial regulatory expectations.
• Supports institutional adoption: Audited, regulated products help pension funds and asset managers integrate crypto into portfolios.
• Drives innovation: 21Shares continues to launch new products, such as ETPs for emerging blockchains like Solana and Cardano.
• Global influence: Its success has inspired similar ETP structures in the U.S. and Asia, shaping the future of crypto investment vehicles.

As digital assets gain legitimacy, 21Shares stands at the forefront of regulated financial innovation, offering secure, transparent pathways for capital to flow into the crypto ecosystem.