21Shares has introduced a new multi-crypto exchange-traded product (ETP), designed to be Europe's most diversified basket of digital assets. This innovative offering provides investors with exposure to both foundational and emerging sectors within the cryptocurrency ecosystem. The product is structured to capture broad market growth through a carefully curated and dynamically managed portfolio.
Listed on Euronext Paris in euros under the ticker FUTR FP and on Euronext Amsterdam in US dollars as FUTR NA, the 21Shares Future of Crypto Index ETP offers a convenient and regulated avenue for investors to access a wide range of digital assets. The ETP aims to cover over 80% of the entire crypto market, utilizing a strategic allocation model that balances established technologies with new, high-growth potential opportunities.
Product Structure and Security
The ETP employs a full direct, or 'physical,' replication strategy. This means each share is 100% collateralized by a corresponding direct investment in the underlying crypto assets. These assets are secured using an institutional-grade cold-storage custody solution, ensuring a high standard of safety and minimizing counterparty risk for investors.
Hany Rashwan, co-Founder and CEO of 21Shares, highlighted the significance of this launch: "As 21Shares’ first-ever crypto mega-theme ETP, FUTR represents the next evolution of the firm’s European product lineup and a potential opportunity for investors looking for the next step after allocating to Bitcoin and Ethereum."
Index Methodology and Core Themes
The ETP's performance is linked to the 21Shares Future of Crypto Index. This index utilizes the Global Crypto Classification Standard (GCCS) to systematically categorize various projects and digital assets. This methodology allows for targeted exposure to six pivotal sub-themes expected to drive significant future growth. Each theme has a specific target allocation:
- Payment Platforms (30% target weight): Blockchains or protocols specializing in value transfer.
- Smart Contract Platforms (30%): Foundational blockchains that support general-purpose programmability for smart contracts and decentralized applications (dApps).
- Blockchain Accelerators (10%): Auxiliary blockchains that enhance the transaction capacity of a primary blockchain while maintaining its security.
- Decentralized Finance (10%): Digital-first financial systems operating independently of centralized entities like banks.
- AI and Data Solutions (10%): Platforms that integrate artificial intelligence and data processing to improve functions within crypto ecosystems.
- Social and Gaming (10%): Projects that merge blockchain technology with the gaming industry and social features to foster user interaction.
Selection and Weighting Criteria
The index employs strict selection criteria. It excludes meme tokens, privacy tokens, and any assets with less than $2 million in daily trading liquidity. Assets are generally weighted by market capitalization, though specific rules lead to unique distributions. For instance, Bitcoin is the sole representative of the Payment Platforms sub-theme, carrying its full 30% weight. Similarly, Ethereum maintains a consistent 20% weight within the Smart Contract Platforms category.
After the initial weighting, any crypto asset that falls below a 0.5% threshold is removed from the index, and its weight is reallocated among the remaining assets within that same sub-theme. This ensures the portfolio remains focused on the most relevant and liquid assets. 👉 Explore more investment strategies
Current Portfolio Composition
The ETP is currently invested in a diverse array of over twenty digital assets. The top holdings include Bitcoin (29.4%) and Ethereum (20.0%), followed by other major tokens like Solana (7.5%), Uniswap (6.6%), and Chainlink (6.2%). The portfolio also includes assets from the gaming and metaverse sectors, such as Axie Infinity and The Sandbox, alongside scaling solutions like Polygon, Optimism, and Arbitrum.
This composition reflects the index's goal of providing comprehensive exposure to the various high-growth themes within the crypto market, all within a single, tradable product.
Frequently Asked Questions
What is a crypto basket ETP?
A crypto basket ETP is an exchange-traded product that holds a collection of different cryptocurrencies. It allows investors to gain exposure to a diversified portfolio of digital assets through a single trade, similar to how an ETF tracks a stock index, without the need to buy and manage each cryptocurrency individually.
How does the 21Shares ETP select which cryptocurrencies to include?
The selection is based on the rules of its underlying index. It uses the Global Crypto Classification Standard to categorize assets into specific themes like Payments or DeFi. It then applies filters, excluding meme coins, privacy tokens, and illiquid assets (those with less than $2 million daily volume), before weighting primarily by market cap.
What are the benefits of a multi-theme investment approach?
A multi-theme approach helps spread risk across different sectors of the crypto economy. Instead of betting on a single trend, it captures growth from various innovative areas, from foundational payment networks to emerging fields like AI-blockchain integration and decentralized gaming.
Is this ETP suitable for investors new to crypto?
This type of product can be a useful tool for investors who have moved beyond basic Bitcoin and Ethereum exposure and are seeking a more diversified, yet managed, approach to the broader digital asset market. It simplifies the process of building a complex portfolio.
How is the security of the underlying assets handled?
The ETP uses a physical replication model where the actual cryptocurrencies are purchased and stored offline in institutional-grade cold storage custody solutions. This greatly reduces the risk of theft from online hacks and ensures the product is fully collateralized.
Where can investors trade this ETP?
The 21Shares Future of Crypto ETP is listed on major European exchanges, specifically Euronext Paris for trading in euros (FUTR FP) and Euronext Amsterdam for trading in US dollars (FUTR NA). 👉 View real-time market tools