21Shares Introduces Cronos ETP, Regulating Access to Crypto.com Token

21Shares has launched a new ETP for Crypto.com’s Cronos token, providing regulated access for institutional investors. The ETP is designed to ease entry into the crypto market and is part of 21Shares’ strategy to expand altcoin investments, responding to rising interest in crypto-based products.

In a notable move in the cryptocurrency market, 21Shares, a Swiss asset management firm, has introduced its latest exchange-traded product (ETP), specifically targeting Crypto.com’s Cronos (CRO) token. This ETP is now officially listed on the Euronext exchanges in Paris and Amsterdam. It offers institutional investors a more regulated avenue to access CRO via standard brokerage firms and banks, marking a significant easing of entry for traditional investors into the crypto space.

The Cronos token operates on the Cronos network, which is essentially Crypto.com’s Layer-1 blockchain. This ecosystem supports a variety of innovations, including decentralized finance (DeFi), non-fungible tokens (NFTs), and broader Web3 applications. The ETP is designed to provide a secure entry to this blockchain network, allowing investors to tap into these burgeoning sectors without needing digital wallets or navigating complex exchanges.

This launch of the Cronos ETP underscores a growing appetite for crypto-based investment vehicles among investors. 21Shares is positioning itself to satisfy both novice investors wanting easier access to digital assets as well as institutional clients. With an annual management fee pegged at 2.5%, the ETP responds to the market’s demand for regulated cryptocurrency exposure, particularly in Europe and the US.

On the technological front, the Cronos network has reported significant achievements within DeFi, boasting a total value locked (TVL) of $400 million—$64 million of which is attributed to Crypto.com’s staking of liquid Ether, known as Staked ETH. This snapshot highlights the platform’s capability to draw both individual and institutional investors alike, reinforcing its competitive position in the crowded cryptocurrency arena.

As part of its broader strategy, 21Shares has been actively launching various crypto-linked ETPs across Europe. The firm has also put forward proposals to the U.S. Securities and Exchange Commission (SEC) for several altcoin-based exchange-traded funds (ETFs), including well-known names like Solana and Dogecoin. Interest in these types of funds has surged, particularly after the recent achievements of Bitcoin ETFs, as asset managers attempt to replicate that success.

The impending approval of spot Bitcoin ETFs in 2024 has triggered a wave of demand for altcoin ETFs, with several U.S. issuers vying to enter this market. As the SEC starts to accept more crypto-centric financial products, it stands to reason that the adoption of altcoin ETFs could gain momentum, meeting the diverse needs of investors.

Institutional interest in crypto-based investments, like the newly launched Cronos ETP, highlights a growing trend toward mainstream acceptance of blockchain assets. The ETP not only grants exposure to the Cronos blockchain but also to its dynamic NFT and DeFi ecosystems. Listing on major European exchanges further exemplifies the increasing institutional confidence in blockchain investments.