On Wednesday, the biggest issuers of crypto ETPs globally, 21Shares, entered the US crypto market space by launching two crypto index funds. Thus, eligible investors can gain investment exposure to digital assets regardless of whether they are large or medium-cap-sized digital assets.
Details About The New Index Funds
The newly launched index funds will monitor the performance of the crypto basket 10 US index and mid-cap US index. Both index funds contain the top digital assets based on market cap. However, the crypto issuer revealed that it would have a quarterly rebalancing and reconstitution of these indexes to suit the dynamism of the crypto sector. The index funds are open to any accredited US-based investors.
While commenting on the new launch, 21Shares CEO and founder, Harry Rashwan, said, “21Shares has launched several top-performing portfolios of crypto ETPs within the last four years. These newly launched ETPs mark our entrance into the US crypto market and enhance our brand’s reputation.”
“We remain committed to our primary objective – connecting all aspects of the crypto sector. Through these newly launched index funds, we are convinced that our US investors will gain massive investment exposure to the crypto space and provide an excellent alternative for those willing to diversify their crypto investments.”
One of the funds, the crypto basket 10 index funds, tracks the top ten digital assets’ prices on US crypto exchanges and any other digital asset outside the top ten. But, they must have a proven history of top-level performance. Polygon (MATIC) and Litecoin (LTC) currently fall into that category or Bitcoin (BTC) and Ethereum (ETH) if they are no longer among the top ten digital assets by market cap.
In contrast, the mid-cap index fund tracks the performance of digital assets with huge potential. 21Shares’ product director, Arthur Krause, added that “the charts show that the combined ROI of the top 12 digital assets have been better than the common indexes such as Nasdaq Composite, Dow Jones Industrial Average, and the S&P 500.” “
Hence, our newly launched index funds will give crypto investment exposure to investors less risk. For instance, investing in our index funds makes these investors less vulnerable to security breaches or the huge pressure of managing custodial arrangements.”
21Shares hopes it can establish its foothold on the US crypto investment scene as it has done in other regions. Before these newly launched indexes, 21Shares recently launched a BTC and gold ETP on the SIX Swiss Exchange (the first of its kind globally) and the first crypto ETF for the Australian market.
Crypto Fear & Index Is Still In The Extreme Fear Region
The launch of 21Shares crypto index funds comes when the crypto market sentiment is bearish. The popular crypto fear & greed index, alternative.me, continues to be in the extreme fear region even though it has risen slightly from a 2-year low of 8, as was seen on Tuesday, May 17.
Crypto fear & greed index. source: alternative.me
Many investors are unwilling to invest vast amounts into the crypto market during this period. Instead, they would prefer to convert their digital assets to fiat.
