Switzerland-based crypto asset manager 21Shares has announced that it has exceeded $5 billion in Assets Under Management (AUM) as the cryptocurrency market rebounds.
In a press release on Tuesday, the company, known as the largest issuer of cryptocurrency exchange-traded products (ETPs), attributed $3.17 billion of the total AUM to its subsidiary, 21Shares AG.
Ophelia Snyder, co-founder and President of 21Shares, expressed gratitude to the team for their dedication, which contributed to achieving this milestone.
The company has witnessed significant growth in recent years, evidenced by its collaboration with Ark Invest to refile an application for a spot market Ethereum ETF last month. Notably, the revised application elaborates on the ETF’s share creation and redemption process, enhancing transparency in comparison to other investment vehicles.
Additionally, 21Shares has partnered with Ark Invest to integrate Chainlink’s Proof of Reserve platform, aiming to enhance transparency for their ARK 21Shares Bitcoin ETF (ARKB) by verifying holdings data.
With a diverse range of ETPs, 21Shares allows investors to access cryptocurrencies through traditional investment vehicles without the need for direct management. These ETPs are listed on various stock exchanges, making them accessible to investors through traditional brokers.
Europe holds the largest share of AUM at $3.17 billion, followed by the United States at $2.13 billion, with Australia accounting for $56.3 million.
In parallel, crypto custody firms are also witnessing a surge in AUM. Balance, a Canadian digital asset custodian, recently reached $2 billion in assets under custody amid the market recovery. Similarly, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, reported substantial growth in assets under its custody.
Analysts at Bernstein Research anticipate the AUM of crypto funds to reach between $500 billion to $650 billion within the next five years, reflecting significant growth potential from the current valuation of approximately $50 billion.