Asset manager 21Shares has launched two cryptocurrency index exchange-traded funds (ETFs) under the Investment Company Act of 1940. These funds follow a structure used for traditional U.S. mutual funds and ETFs, offering investors a new way to access digital assets through regulated financial products.
Meanwhile, the two new ETFs are named the 21Shares FTSE Crypto 10 Index ETF (TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (TXBC). Both products track indexes created by FTSE Russell. TTOP includes the top 10 cryptocurrencies by market size, while TXBC includes the top 10, excluding Bitcoin.
These ETFs are designed to give investors broader access to the crypto market in a single product. Instead of buying individual tokens, investors can use these funds to track a wide set of digital assets. The approach mirrors traditional index funds, which are often used in stock markets for similar reasons.
Using the 1940 Act Framework
Unlike earlier crypto funds approved under the Securities Act of 1933, these two ETFs fall under the Investment Company Act of 1940. This law sets stricter rules for fund management, asset custody, and investor protection. Most U.S. mutual funds follow this structure.
Federico Brokate, global head of business development at 21Shares, said,
“Index funds have helped investors build balanced portfolios in traditional markets. The same model can work in crypto.”
Some investors are watching to see how the 1940 Act framework fits with digital assets, which move and behave differently than traditional holdings.
In addition, the new ETFs come shortly after 21Shares was acquired by FalconX, a digital asset firm based in the U.S. The purchase amount was not shared. 21Shares will continue to run its business under the FalconX brand but will operate independently.
The company has already launched several crypto-related products in other markets and is now expanding its reach in the U.S. Through the FalconX partnership, 21Shares aims to bring more regulated crypto investment options to market.
Broader Growth in Crypto ETFs
This launch adds to a growing list of crypto ETFs approved in the U.S. since early 2024. Most of those, including spot Bitcoin and Ether funds, were approved under the 1933 Act, which has different rules from the 1940 Act. The 21Shares funds now stand out for using the same rulebook applied to most U.S. investment funds.
Investor demand for crypto ETFs remains strong. BlackRock’s IBIT Bitcoin ETF reached around $70 billion in assets within 18 months of its release. The addition of diversified index ETFs may appeal to investors who want access to crypto through a more familiar fund structure.
XRP ETF Begins Trading
Separately, Canary Capital has launched the first spot XRP ETF in the U.S. The fund trades under the ticker XRPC on the Nasdaq exchange. It was approved using an automatic process under the 1933 Act, which allowed it to move forward during a partial government shutdown.
Nasdaq certified the ETF on November 12, and trading started on November 13, 2025. This fund offers investors access to XRP directly, without relying on futures or other contracts.
