On November 13,2025, the digital asset investment landscape in the United States took a significant leap forward. 21Shares, a global leader in crypto ETPs, launched the first-ever cryptocurrency market index ETFs registered under the Investment Company Act of 1940 (’40 Act). This move not only marks a regulatory milestone but also signals a maturation of crypto investing for both institutional and retail market participants.
The two new funds – the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC) – offer diversified exposure to top digital assets. TTOP includes Bitcoin, Ethereum, Solana, and Dogecoin among others, while TXBC provides access to leading cryptocurrencies excluding Bitcoin. Both funds rebalance quarterly, enabling investors to maintain dynamic exposure as the market evolves without constant hands-on management.
The ’40 Act Advantage: Raising the Bar for Crypto ETFs
What sets these ETFs apart is their registration under the ’40 Act – a framework long favored for its robust investor protections and tax advantages. By aligning with this gold standard of fund regulation, 21Shares has placed its crypto index ETFs on equal legal footing with mainstream stock and bond funds. For investors seeking regulated crypto exposure in 2025, this is more than a technicality; it is a game-changer.
’40 Act registration brings:
- Enhanced transparency through regular disclosures
- Tighter oversight by regulators
- Improved liquidity, making it easier to enter or exit positions
- Tax efficiency, especially appealing for institutional portfolios
This structure has already proven its value in traditional finance. Now, it is reshaping how digital assets are accessed by everyone from family offices to individual investors looking for compliant vehicles.
Diversification Without Complexity: How TTOP and TXBC Work
The core appeal of these new ETFs lies in their ability to simplify diversified crypto investing. Instead of tracking single coins or managing multiple wallets across exchanges, investors can now capture broad market performance through a single ticker. TTOP tracks the top ten cryptocurrencies by market cap; TXBC does so while excluding Bitcoin to focus on altcoin growth potential.
This approach minimizes idiosyncratic risk tied to any one asset and removes much of the operational friction that has historically deterred mainstream adoption. Quarterly rebalancing ensures that allocations reflect current market realities – no need for manual intervention as trends shift or new leaders emerge among digital assets.
A Partnership Built for Scale: 21Shares and Teucrium Trading
The launch was made possible through collaboration with Teucrium Trading, renowned for its expertise in commodity-linked funds under ’40 Act rules. This partnership brings together deep knowledge of regulated fund operations with cutting-edge digital asset indexing strategies – an essential combination as demand from institutions and sophisticated retail investors accelerates in 2025.
By uniting traditional investment rigor with innovative product design, these ETFs are setting new standards for what regulated crypto exposure looks like in the US marketplace.
With fees set at a competitive 0.5% for TTOP and 0.65% for TXBC, 21Shares is making a clear statement: regulated, diversified digital asset exposure should be both accessible and cost-effective. For institutional allocators, the combination of low fees, quarterly rebalancing, and ’40 Act safeguards removes many of the long-standing barriers to entering the crypto space at scale.
Institutional Momentum: What Changes in 2025?
The arrival of these ETFs under the ’40 Act is already reshaping conversations inside investment committees and family offices. Historically, compliance concerns and operational complexities kept many professional investors on the sidelines. Now, with products like TTOP and TXBC offering familiar fund structures, robust oversight, and transparent reporting, crypto allocation is no longer a speculative outlier but a legitimate component of diversified portfolios.
Top Benefits of 21Shares Crypto Index ETFs for Institutions
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Robust Regulatory Oversight: 21Shares’ ETFs are the first crypto index funds registered under the 1940 Act, offering institutional investors enhanced legal protections and compliance standards on par with traditional stock and bond funds.
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Diversified Exposure to Leading Cryptocurrencies: The TTOP ETF provides access to the top 10 cryptocurrencies by market cap, including Ethereum, Solana, and Dogecoin, while the TXBC ETF offers exposure to top digital assets excluding Bitcoin.
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Quarterly Rebalancing for Market Adaptation: Both ETFs rebalance quarterly, ensuring portfolios remain aligned with the rapidly evolving crypto market and minimizing the need for manual adjustments by institutional investors.
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Cost-Effective Investment Structure: With management fees set at 0.5% for TTOP and 0.65% for TXBC, these ETFs offer a competitive and transparent fee structure for large-scale investors.
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Tax Efficiency and Operational Simplicity: The ’40 Act structure provides favorable tax treatment and simplifies reporting, making it easier for institutions to integrate crypto exposure into their existing portfolios.
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Partnership with Teucrium Trading: The collaboration with Teucrium Trading, a leader in commodity-linked ETFs, brings proven expertise and operational reliability to the crypto ETF space.
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Boosted Investor Confidence: The regulated nature of these ETFs under the SEC’s oversight helps mitigate risks and builds trust among institutional allocators considering digital assets.
For wealth managers and advisors, these funds provide an efficient on-ramp to digital assets without requiring deep technical expertise or new custodial relationships. Risk management becomes more straightforward as well: broad market indices reduce single-asset volatility while regulatory protections mitigate headline risk.
Retail Investors Step In: A New Era of Crypto Access
While institutions are leading the charge, retail investors stand to benefit just as much from this evolution. The simplicity of buying a ticker like TTOP or TXBC through a brokerage account democratizes access to diversified crypto exposure, no wallets or seed phrases required. As liquidity deepens and educational resources expand around these products, expect retail participation in regulated crypto ETFs to climb steadily in 2025.
This shift also addresses one of the most persistent challenges in digital asset investing: emotional decision-making driven by price swings or news cycles. By embedding crypto allocations within disciplined ETF structures that rebalance automatically, investors can participate in long-term growth themes while sidestepping much of the noise that plagues direct coin ownership.
Looking Forward: The Strategic Role of Diversified Crypto ETFs
The launch of 21Shares’ ’40 Act crypto index ETFs marks more than just another product milestone, it signals a strategic inflection point for digital asset investing in the US. As regulatory clarity continues to improve and product innovation accelerates, expect more sophisticated strategies (including sector-specific indices or ESG-focused baskets) to follow this blueprint.
For now, TTOP and TXBC represent an elegant solution for those seeking broad-based exposure without operational headaches or regulatory uncertainty. They offer an opportunity to participate in one of finance’s most dynamic frontiers, on terms that meet the highest standards for transparency, security, and tax efficiency.
The message is clear: whether you’re managing institutional capital or building your own portfolio from home, regulated crypto index ETFs are poised to become foundational tools for navigating digital markets in 2025 and beyond.
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