21Shares is shifting its crypto ETF strategy from passive to active management, according to President Duncan Moir. This move aims to capitalize on the nascent and growing asset class by scaling yield streams and exploring additional earning opportunities beyond merely holding crypto assets.
Strategic Shift to Active Management
Moir highlighted regional demand differences: U.S. interest focuses on larger coins, while European institutional clients show interest in newer assets and application layers. This geographic divergence drives the need for a more tailored approach.
As part of the active strategy, 21Shares has launched an ETP tied to Stretch (STRC) stock, offering an annual dividend yield of up to 11.5%, reflecting strong demand for yield-bearing assets. Additionally, crypto ETF staking rewards are being pursued by asset managers like Grayscale and BlackRock to enhance investor returns.
Moir also noted the launch of a Bitcoin-and-gold ETP, catering to safe-haven demand amid economic uncertainties. The product combines two traditional and digital safe-haven assets.
Crypto ETF Market Overview
As of now, total crypto ETF assets under management stand at approximately $130 billion, down from nearly $240 billion at the peak of 2025. Despite the decline, institutional interest remains strong, with major banks increasing their crypto ETF holdings.
The shift to active management could breathe new life into the crypto ETF market, especially as investors seek better returns and risk management. This transition may prompt other asset managers to follow suit, driving further innovation in the space.
However, regulatory uncertainty remains a risk, particularly in the U.S. where SEC approval for crypto ETFs continues to be a hurdle.