As the cryptocurrency market matures in early 2026, a significant shift is underway within exchange-traded products (ETPs), moving decisively beyond simple passive exposure. According to Duncan Moir, President of crypto asset manager 21Shares, actively managed strategies are now shaping the next phase of crypto ETFs, driven by evolving investor demand and a more sophisticated product landscape. This transition reflects the asset class’s ongoing integration into mainstream finance.
Crypto ETFs Enter an Active Management Phase
The narrative around cryptocurrency investing is rapidly changing. Initially dominated by spot Bitcoin and Ether ETFs that passively track prices, the market is now witnessing a push toward active management. Duncan Moir explained this evolution in a recent interview, noting that crypto’s inherent volatility and growth potential make it particularly suitable for active strategies. Consequently, 21Shares has significantly expanded its portfolio management and trading teams to develop these more sophisticated products.
This expansion is not occurring in a vacuum. Data compiled by Morningstar and Goldman Sachs Asset Management shows that active ETFs globally held nearly $1.8 trillion in assets at the end of 2025. The crypto segment is now following this broader trend. Moir emphasized that his firm combines deep, bottom-up research on individual digital assets with quantitative, top-down strategies to manage risk and position portfolios effectively.
Regional Demand Diverges as the Market Matures
Investor appetite for crypto ETPs is not uniform across the globe, revealing distinct regional characteristics. Moir highlighted a clear divergence between the United States and Europe. In the U.S., interest remains heavily concentrated in larger, established coins like Bitcoin (BTC) and Ether (ETH). In contrast, European institutional clients demonstrate a more mature approach, often seeking exposure to newer assets and application-layer technologies beyond foundational layer-1 blockchains.
This divergence stems from Europe’s more advanced investor base. Many institutions there already hold core crypto allocations and are now looking to diversify and expand into more complex, yield-generating strategies. Against this backdrop, 21Shares recently launched a European exchange-traded product linked to Strategy’s preferred stock (STRC), which offers exposure to a high-yield instrument tied to a Bitcoin-focused capital strategy. The product has reportedly seen strong early demand, indicating investor appetite for assets that generate yield while being accessible through traditional brokerage platforms.
The Strategic Role of Acquisition and Integration
A key development accelerating 21Shares’ product roadmap was its acquisition by FalconX in October 2025. Moir stated that integration with the digital asset prime brokerage is expected to significantly speed up the development of complex offerings. This partnership provides enhanced infrastructure and market access, which is crucial for executing advanced active management strategies in the crypto space. The collaboration underscores a industry-wide movement toward vertical integration to better serve institutional needs.
Product Evolution Beyond Simple Price Tracking
The maturation of the crypto ETP market is evident in the move beyond simple price-tracking funds. One area gaining substantial traction is staking—a process that allows investors to earn yield by participating in blockchain network security. This feature adds an active income component to what was traditionally a passive holding.
Major asset managers have already incorporated staking into their products. For example, in October 2025, Grayscale introduced staking across its ETPs, making its Ether funds the first U.S.-listed spot crypto ETFs to offer staking rewards. Similarly, asset manager BlackRock launched a Nasdaq-listed Ethereum product in March 2025 that combines spot Ether exposure with staking yield generation, recording $15.5 million in trading volume on its first day.
21Shares evaluates new product launches based on a three-factor framework:
- Internal Research: The firm’s research team identifies early opportunities in the crypto ecosystem.
- Client Demand: Direct feedback from institutional investors helps gauge real-world interest.
- Broader Market Trends: Analysis of where the market is heading informs whether to build niche, single-asset products or broader thematic offerings.
Moir cited the company’s Bitcoin-and-gold ETP as a successful example of this approach. The product, which has been live for four years and was recently cross-listed in London, has delivered some of the strongest risk-adjusted returns among European ETPs. From a portfolio perspective, the combination offers clear diversification benefits across two distinct store-of-value assets.
Conclusion
The landscape for crypto ETFs and ETPs is undergoing a fundamental transformation in 2026, shifting from passive vehicles to actively managed strategies that seek alpha and generate yield. Driven by maturing investor demand, particularly in Europe, and enabled by strategic industry integrations, firms like 21Shares are at the forefront of this next phase. As products evolve to include features like staking and thematic exposures, the crypto ETF market is poised to offer a more sophisticated toolkit for portfolio construction, mirroring the complexity and dynamism of the underlying asset class.
FAQs
Q1: What is an actively managed crypto ETF?
An actively managed crypto ETF employs portfolio managers who make deliberate investment decisions about which digital assets to buy, hold, or sell, aiming to outperform a simple benchmark index, unlike passive ETFs that merely track an index.
Q2: Why does 21Shares believe crypto is suited for active management?
According to President Duncan Moir, crypto is a nascent and rapidly evolving asset class with high volatility and dispersion among projects, creating opportunities for skilled managers to add value through research and strategic positioning that passive strategies might miss.
Q3: How does demand for crypto ETPs differ between the US and Europe?
As of early 2026, U.S. interest remains focused on large-cap coins like Bitcoin and Ether. In Europe, institutional investors with existing core holdings are increasingly seeking exposure to newer assets, application-layer technologies, and yield-generating strategies, indicating a more mature market.
Q4: What role does staking play in the new generation of crypto ETFs?
Staking allows ETF holders to earn rewards (yield) by participating in the proof-of-stake consensus mechanisms of certain blockchains. This transforms a passive holding into an income-generating asset, adding an active return component to products from firms like Grayscale and BlackRock.
Q5: How did the FalconX acquisition affect 21Shares’ product development?
The acquisition in October 2025 provided 21Shares with enhanced infrastructure and prime brokerage capabilities from FalconX. This integration is expected to accelerate the development of more complex, actively managed crypto investment products by improving execution and operational support.
Updated insights and analysis added for better clarity.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
