21Shares, in collaboration with Teucrium Trading LLC, has filed for two regulated crypto ETFs, impacting the market for digital assets in the U.S.
First Step Towards Regulated Investment
21Shares US LLC has filed two landmark crypto ETFs with the U.S. Securities and Exchange Commission (SEC), marking a significant step towards regulated investment. This is the first instance of crypto funds being structured under the Investment Company Act of 1940.
ETF Structure and Tax Benefits
These ETFs offer tax advantages and align with familiar standards for investors. They qualify for Form 1099 tax reporting, simplifying the process compared to K-1 forms often used in alternative investment products.
Comprehensive Products for Investors
The 21Shares FTSE Crypto 10 Index ETF and the 21Shares FTSE Crypto 10 ex-BTC Index ETF aim for portfolio diversification. The former tracks the top ten cryptocurrencies, while the latter excludes Bitcoin, focusing on tokens and networks with practical applications.
By filing the first 1940 Act crypto ETFs, 21Shares and Teucrium are taking a significant step towards regulated investment in digital assets. The products aim to combine innovation in crypto technology with traditional investment structures.
