21Shares AG Zurich: Crypto ETP Leader

Organisation Overview

21Shares AG is a Zurich-based financial products company and the world’s largest issuer of cryptocurrency exchange-traded products (ETPs). The company provides regulated, exchange-listed investment vehicles that give institutional and retail investors exposure to digital assets through traditional brokerage accounts — eliminating the need for direct cryptocurrency custody, wallet management, or exchange interaction.

Founded by Hany Rashwan and Ophelia Snyder, 21Shares has built a comprehensive product suite spanning single-asset ETPs, index products, and staking ETPs listed on major European stock exchanges. The company’s Zurich headquarters positions it within Switzerland’s premier financial centre, with proximity to both the traditional banking establishment and the Crypto Valley blockchain ecosystem.

History and Founding

21Shares (originally Amun AG) was founded in 2018 by Hany Rashwan and Ophelia Snyder, who identified a critical market gap: institutional investors and retail clients wanted digital asset exposure but faced operational barriers including custody complexity, regulatory uncertainty, and integration with existing portfolio management infrastructure.

The company launched the world’s first physically-backed crypto ETP on the SIX Swiss Exchange in November 2018, providing Bitcoin exposure through a regulated, exchange-listed product. This first-mover advantage, combined with Switzerland’s supportive regulatory environment for innovative financial products, enabled rapid product expansion.

21Shares subsequently partnered with Ark Invest, the US-based investment management firm led by Cathie Wood, to develop and market cryptocurrency ETPs and, ultimately, to co-file for spot Bitcoin and Ethereum ETFs in the United States. The Ark 21Shares Bitcoin ETF launched in January 2024, marking a landmark moment for institutional crypto adoption.

Product Range

Single-Asset ETPs

21Shares offers physically-backed ETPs providing exposure to individual digital assets including Bitcoin, Ethereum, Solana, Polkadot, Cardano, and numerous others. Each ETP is 100% physically backed, meaning the underlying digital assets are held in custody by regulated custodians.

Index Products

Multi-asset ETPs track diversified cryptocurrency indices, providing portfolio-level exposure to the digital asset market. These products address the needs of investors seeking broad market exposure rather than single-asset positions.

Staking ETPs

21Shares pioneered staking ETPs — products that not only provide exposure to proof-of-stake assets but also pass through staking rewards to ETP holders. These products combine the simplicity of exchange-listed investing with the yield-generating capabilities of blockchain staking.

US ETFs

Through the partnership with Ark Invest, 21Shares co-sponsors spot Bitcoin and Ethereum ETFs listed on US exchanges. These products have attracted substantial inflows, reflecting pent-up institutional demand for regulated, exchange-listed crypto investment vehicles in the US market.

Swiss Operations

Zurich Headquarters

21Shares’ Zurich headquarters houses product development, regulatory affairs, research, and corporate functions. The choice of Zurich — rather than Zug, where most protocol foundations are based — reflects the company’s orientation toward the traditional financial sector and the concentration of asset management expertise in Zurich.

SIX Swiss Exchange

Switzerland’s principal stock exchange has been a key enabler for 21Shares, providing a regulated listing venue for crypto ETPs before such products were widely available on other European exchanges. The SIX Exchange’s willingness to list innovative digital asset products reflects Switzerland’s broader regulatory philosophy of fostering financial innovation within appropriate supervisory frameworks.

Regulatory Framework

21Shares operates within Swiss financial regulation, with its ETPs structured as debt instruments (tracker certificates) collateralised by physically-held digital assets. This structure provides investor protection through regulated custody, daily reporting, and exchange listing requirements.

Custody and Infrastructure

The physical backing of 21Shares’ ETPs requires institutional-grade custody infrastructure. The company works with regulated custodians including Coinbase Custody and other institutional service providers to secure the underlying digital assets. Custody arrangements are independently audited, and asset holdings are transparently reported.

This custody infrastructure represents a significant operational competency, as the company manages custody across dozens of different digital assets, each with distinct technical requirements for secure storage and transaction processing.

Market Position

21Shares leads the global crypto ETP market by number of listed products and maintains a significant share of assets under management in the category. The company’s competitive advantages include:

• First-mover position: Earliest and broadest product range in the crypto ETP category
• Multi-jurisdiction distribution: Products listed on exchanges across Switzerland, Germany, France, the Netherlands, and the United States
• Institutional relationships: Partnerships with major asset managers, including the strategic Ark Invest collaboration
• Product innovation: Pioneering products including staking ETPs and multi-asset indices
• Swiss quality: Zurich headquarters and SIX listing provide institutional credibility

Competition in the crypto ETP space has intensified with entries from traditional asset managers (Fidelity, BlackRock, Franklin Templeton) and European ETP specialists. However, 21Shares’ early-mover advantages in product breadth, distribution, and institutional relationships maintain its market-leading position.

Research and Education

21Shares maintains a dedicated research team that publishes institutional-grade analysis on digital assets, market trends, and protocol developments. Research output supports client decision-making, enhances brand credibility, and contributes to broader market education about digital asset investment.

The company’s research activities also support product development, as the team evaluates new digital assets and DeFi protocols for potential ETP eligibility.

Outlook

21Shares’ strategic trajectory focuses on expanding its US ETF presence through the Ark partnership, broadening its European ETP range, and developing innovative product structures including DeFi-focused and tokenised asset ETPs. As institutional adoption of digital assets deepens globally, 21Shares’ combination of Swiss quality, product innovation, and global distribution positions it to capture significant market share in the rapidly growing crypto investment product category. For insights into the broader digital asset trading ecosystem, see our sister site.

Donovan Vanderbilt is a contributing editor at ZUG BLOCKCHAIN. This article is informational and does not constitute investment or financial advice.