The six closures have combined assets under management (AUM) of less than $700,000.
21Shares has announced that it will immediately cease offering six of its crypto exchange-traded products. According to a company spokesperson, the decision follows after the firm’s realization that these particular products are in low demand. Of the six products to be axed, five of them will close with business on the April 6 trading day. Those include the 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH), the 21Shares Crypto Layer 1 ETP (LAY1), the 21Shares DeFi 10 Infrastructure ETP (DEFII), 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), and lastly, the 21Shares USD Yield ETP (USDY). Whereas, the last product – 21Shares Terra Classic ETP (LUNA) – will continue trading until June 12.
ETP Provider 21Shares Makes Light of Decision, Calls It a Routine
Meanwhile, the firm insists that the decision to drop some of its products is not exactly a big deal. According to the spokesperson, decisions like this are quite common in the ETP industry. More so, the products in question are also seeing very low demand when compared to what is obtainable with other products.
To put the above statement into perspective, all six closures have combined assets under management (AUM) of less than $700,000.
Additionally, the spokesperson also pointed to the fact that other products are currently doing good numbers. Therefore, the company would rather focus its attention on these other products at the moment. The spokesperson wrote partly an email:
“While these ETPs saw relatively low demand, we’re seeing continuous strong demand in our other products.”
Per the spokesperson, 21Shares had a record-breaking January in terms of net new assets early this year. Although what it saw this year represents only its second-strongest January in company history. That is, since the firm was founded in 2018.
In January, 21Shares added $26.95 million in net new assets, signaling a rise in what it posted – $26.73 million, during the same period last year. But, overall, January 2021 still holds the company record with nearly $44 million in assets.
Meanwhile, it might also be worth mentioning that the claims that its other products are doing fine are justifiable. Its Ethereum ETP (AETH) and 21Shares Bitcoin ETP have both surpassed $200 million in assets under management, becoming only the second and third products to cross that mark.
The news about 21Shares shutting down ETPs was first reported by Bloomberg.