21Shares is the largest cryptocurrency ETP provider in Europe. What many people don’t know: together with ARK Invest from the USA, they are also the third largest Bitcoin ETF provider, right after BlackRock and Fidelity. At Token2049 in Singapore, BTC-ECHO met CEO Hany Rashwan and spoke to him about his views on the ETF sector.
BTC-ECHO: Can you tell us how the ETP business has performed over the last 12 months?
Hany Rashwan: Over the last 12 months we have consolidated our leading position in Europe, where we now have a market share of around 42 – 44 percent. We have introduced new products, some based on already established trends, such as: B. the Telegram Toncoin, and others that are still early, like Sui. We are also number one in Australia and the Middle East and now have a strong position in the US behind BlackRock and Fidelity.
Will there perhaps be a strategic shift towards the US ETF business as there is more capital circulating there?
Part of what you see is due to price, as many assets are not yet at the 2021 and 2022 highs. We focus on market share and growth in underlying assets such as Solana, Ethereum and Bitcoin. We saw inflows of $3 billion in 2023. Our focus remains on Europe, the USA and other regions. We have offices in New York and are proud of our Swiss roots.
Do you think there will be demand for ETFs in Europe or will the market stick with ETPs?
From my experience, customers are not that interested in the name ETF or ETP. They attach more importance to the structure of the product, such as: B. physical security, minimal deviations and third-party custody. In Europe, the ETP framework works well, especially in Switzerland, where ETPs are treated like exchange-traded commodities (ETCs).
How do you rate the Asian market, especially Hong Kong?
We have already received many investments from Asian investors, mainly from Switzerland. Hong Kong is interesting, but some local regulations complicate product design and make it more expensive for the end customer. We have high quality requirements and would only start there if the product meets our standards.
Staking products seem to be becoming more and more important. How important is it for 21Shares to develop products with returns?
21Shares has the largest range of income-generating products in the world, primarily through staking. We offer both staking and non-staking versions of Ethereum as many institutional investors are not yet approved for staking.
Do you think staking ETFs will be approved in the US soon?
Not yet, but it’s a matter of time. Many countries are gradually allowing staking, and we are seeing a slow convergence in the US. We are confident that it will be approved at some point.
Thank you for the conversation.
This might also interest you