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Crypto asset manager 21Shares has exceeded $5 billion in Assets Under Management (AUM) following a market recovery.
In a press release issued on Tuesday, the largest global issuer of cryptocurrency exchange-traded products (ETPs) reported that $3.17 billion is linked to 21Shares AG, a subsidiary of 21.co.
“Reaching 5 billion in AUM reflects the commitment and diligence of our team, whose relentless efforts have driven us to this significant achievement,” stated Ophelia Snyder, co-founder and President of 21Shares.
“We express our heartfelt appreciation to every member of the 21Shares family for their steadfast dedication to excellence.”
21Shares Experiences Rapid Expansion
21Shares has witnessed swift growth over the last few years.
Just last month, the firm collaborated with Ark Invest to refile a request for a spot market Ethereum ETF.
The most significant update details the ETFs share creation and redemption process.
Creation and redemption are distinctive characteristics of ETFs that enhance their transparency compared to other investment options.
This mechanism helps maintain the share price of the funds in close alignment with the net asset value (NAV) of the underlying assets.
Recently, Ark Invest and 21Shares announced a partnership to improve transparency for their ARK 21Shares Bitcoin ETF (ARKB) by incorporating Chainlink’s Proof of Reserve platform to authenticate holdings data.
21Shares’s varied selection of ETPs enables investors to gain exposure to cryptocurrencies through conventional investment vehicles without the necessity of directly purchasing, storing, or managing the cryptocurrencies themselves.
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21Shares ETPs are available on multiple stock exchanges, making them accessible to investors with accounts at traditional brokers that can access these exchanges.
The ETPs are supported by the underlying cryptocurrencies, which are securely held in custody.
Meanwhile, the distribution of the Assets Under Management (AUM) by region indicates that Europe commands the largest portion at $3.17 billion, followed by the United States at $2.13 billion.
Australia represents $56.3 million of the AUM.
Crypto Custody Firms Experience AUM Surge
Last month, Balance, a Canadian digital asset custodian, announced that it has once again reached $2 billion in assets under custody (AUC) amid the recent resurgence in crypto markets.
Similarly, Korea Digital Asset (KODA), the leading institutional crypto custody service in South Korea, has observed significant growth in the crypto assets it holds.
Recently, the company disclosed that the value of these crypto assets under its custody surged by nearly 248% in the latter half of 2023.
KODA, formed through a partnership between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain technology company Haechi Labs, reported that the value of these assets reached approximately 8 trillion Korean won ($6 billion) by the end of last year.
This marked a considerable increase from the 2.3 trillion won noted at the close of June 2023.
According to analysts at Bernstein Research, crypto funds could potentially reach an astonishing $500 billion to $650 billion within the next five years, a notable rise from the current valuation of around $50 billion.
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