Passive crypto funds are losing their shine. In 2026, 21Shares argues the real opportunity lies in actively managed exchange-traded products powered by sophisticated quantitative models. Duncan Moir, president of 21Shares, says the volatility of digital assets demands more than simple price tracking.

The firm is blending bottom-up asset research with top-down quantitative strategies to manage risk. This shift required hiring traders and engineers capable of building complex data pipelines, not just holding coins. Following FalconX's acquisition of 21Shares last October, product development has accelerated, leveraging institutional-grade execution data to support newer offerings.

Global active ETF assets hit $1.8 trillion by late 2025, signaling a broader move away from static holdings. Moir notes a divergence in data signals across regions. US investors stick to major caps like Bitcoin and Ether, while European institutions are analyzing application-layer assets and newer protocols. This maturity drives demand for yield-generating structures, such as 21Shares' recent ETP linked to Strategy's preferred stock (STRC).

Competitors are also integrating yield mechanisms. BlackRock and Grayscale have launched staking-enabled products, turning network security participation into tradable data points. For 21Shares, future launches depend on internal research, client feedback, and predictive market trends. Moir points to their Bitcoin-and-gold ETP as proof that diversified, algorithmically balanced portfolios outperform single-asset trackers. Engineering teams are now central to defining investment thesis, not just maintaining uptime.

Source: CoinTelegraph