Switzerland-based crypto ETP issuer 21Shares will cancel five of its funds and drop another due to low investor interest.
Arielle Pennington, head of global communications, said the company will continue to offer its other products that are enjoying strong demand.
scraping off some ETP
As revealed Per Bloomberg, the company will close the following five funds: the 21Shares S&P Risk Controlled Ethereum Index ETP (ticker SPETH), the 21Shares S&P Risk Controlled Bitcoin Index ETP (ticker SPBTC), the 21Shares DeFi 10 Infrastructure ETP (DEFII), the 21Shares USD Yield ETP (USDY) and 21Shares Crypto Layer 1 ETP (LAY1).
Traders will no longer have access as of April 6. It will also delist 21Shares Terra Classic ETP (LUNA) on June 12.
The main reason behind the move is low interest, as they have total assets of less than $700,000.
Pennington noted that demand for the other ETPs remains strong, adding that there was a significant number of entries in January. During that month, the assets under management of 21Shares Bitcoin ETP (ABTC) and 21Shares Ethereum ETP (AETH) exceeded $200 million.
The Fed’s policy of raising interest rates has negatively affected some products, such as ETPs, and could be one of the reasons behind the cryptocurrency market crash last year. Other factors include the countless scandals and collapses in the industry, with FTX, Landand Celsius among the infamous examples.
However, the market condition has improved a lot since the beginning of the year. Bitcoin and many altcoins hit multi-month highs amid the US banking cataclysm.
Furthermore, the industry could benefit even more if the Fed ends its aggressive rate hikes, bringing a breath of fresh air to risky assets. Initial expectations are that the central bank will raise interest rates by 25 basis points next week, while some believe it may not touch the percentage afterward. lifting for eight consecutive months.
The BTC ETF was rejected again
In addition to offering ETPs, 21Shares showcased plans to introduce a spot Bitcoin ETF on the Cboe BZX Exchange in a joint effort with Ark Investment Management. However, the US SEC refused the app almost two months ago, as it did in the spring of 2022.
It held that Cboe BZX Exchange did not “demonstrate that its proposal is consistent with the requirements” to prevent price gouging and scams.
The SEC has previously dismissed similar efforts launched by VanEckNECESSARY, grayscaleand other organizations.
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