Skip to content
Technology — 08636 — Web3 — Ico — Altcoin — Pioneering — Crypto — Investing — Crypto adoption — Cronos — Nft — Token — Finance — Eth — Digital asset — Blockchain — Bitcoin — Crypto exchange — Ethereum — Exposure

U.S. introduction of Cronos ETP by 21Shares amid surge of altcoin fund demand

U.S. investors can now invest in a fund that follows the value of Cronos, managed by a Swiss company.

,   and  Administrator
3 min read
U.S. investors can now invest in a fund that mirrors the price of Cronos, with the offering...
U.S. investors can now invest in a fund that mirrors the price of Cronos, with the offering originating from a financial institution based in Switzerland.

The Down low on Cronos ETP

U.S. introduction of Cronos ETP by 21Shares amid surge of altcoin fund demand

Cronos Investment Breakdown

Investment firm 21Shares made a splash on Tuesday, launching an Exchange-Traded Product (ETP) tracking the price of Cronos - the latest addition to a murky pool of proposed or recently unveiled altcoin-based investment offerings in the U.S., as stated in the company's press release.

The ETP offers investors a glimpse of Cronos without forcing them to hold the asset directly, aiming to make investments in a blockchain ecosystem that promotes real-world crypto adoption. According to Mandy Chiu, 21Shares' financial products development head, the launch of the Cronos ETP presents investors with an easy, regulated means to gain exposure to a blockchain ecosystem leading the charge in Web3's future.

Cronos is the native token of the Crypto.com platform, enabling users to interact with decentralized finance platforms, Non-Fungible Tokens (NFTs), and Web3 applications. It works seamlessly with both the Ethereum and Cosmos networks. At the time of this article, Cronos was trading at $0.08636, having dropped 1.54% in the past day, as reported by data provider CoinMarketCap.

When it comes to investor interest, the ETP's debut comes at a time when U.S. regulators are overwhelmed with applications for various altcoin-based funds, likely fueled by evidence of increasing investor appetite for cryptocurrency investment vehicles. Since the SEC's approval of spot Bitcoin and Ethereum ETFs last year, such funds have amassed over $100 billion and $7 billion in Assets Under Management (AUM), respectively, as indicated by data provider CoinGlass.

Altcoins' Rising Tide

As Cronos gains traction within the asset management community, we are witnessing a broader pattern. In March, Trump Media and Technology Group revealed plans to create ETFs tracking popular cryptocurrencies, such as Cronos and Bitcoin, in partnership with centralized crypto exchange Crypto.com. As a result, the altcoin's price jumped 30% to 0.10 upon the announcement, according to CoinGecko data.

While no U.S. altcoin ETFs have been approved as of yet, several proposals are under active review by the SEC. As the regulatory climate becomes increasingly friendly toward altcoins, industry players are hopeful to replicate the successes of Bitcoin and Ethereum ETFs with other digital asset-based funds like those tracking Solana and other altcoins, including AVAX and Sui. Analysts anticipate rapid approvals of altcoin ETFs, which could substantially broaden crypto's presence within traditional financial markets by 2026[1].

In terms of the specific altcoins courted by these investment funds or ETFs, the key contenders include Litecoin, XRP, Solana, Dogecoin, and Cardano. These are tokens that asset managers have prioritized in their applications to the SEC[1]. While Monero and XRP are tipped to perform well in 2025, alongside Bitcoin and stablecoins, Monero is noted for its privacy features, whereas XRP’s impressive performance aligns with its targeting by investment funds[2].

This trend underscores growing mainstream acceptance and institutional interest in altcoin assets beyond Bitcoin and Ethereum[1][2].

  1. The Cronos ETP, launched by 21Shares, offers a regulated means for investors to gain exposure to the Cronos blockchain ecosystem, promoting real-world crypto adoption.
  2. Cronos is the native token of the Crypto.com platform, allowing interactions with decentralized finance, NFTs, and Web3 applications, working seamlessly with Ethereum and Cosmos networks.
  3. At the time of the article, Cronos was trading at $0.08636, having dropped 1.54% in a day, as reported by CoinMarketCap.
  4. The launch of the Cronos ETP comes at a time when U.S. regulators are inundated with applications for various altcoin-based funds, reflecting an increasing appetite for cryptocurrency investment vehicles.
  5. Since the SEC's approval of spot Bitcoin and Ethereum ETFs last year, such funds have amassed over $100 billion and $7 billion in Assets Under Management (AUM), respectively, as indicated by CoinGlass.
  6. As Cronos gains traction, a broader pattern emerges, with altcoins becoming increasingly popular in the asset management community.
  7. In March, Trump Media and Technology Group announced plans to create ETFs tracking popular cryptocurrencies, such as Cronos and Bitcoin, in partnership with Crypto.com, causing the altcoin's price to jump 30%.
  8. While no U.S. altcoin ETFs have been approved yet, several proposals are under active review by the SEC, creating hope for replicating the success of Bitcoin and Ethereum ETFs with other digital asset-based funds.
  9. Analysts anticipate rapid approvals of altcoin ETFs, which could substantially broaden crypto's presence within traditional financial markets by 2026.
  10. Key altcoins courted by these investment funds or ETFs include Litecoin, XRP, Solana, Dogecoin, and Cardano.
  11. While Monero and XRP are perceived as promising for 2025, alongside Bitcoin and stablecoins, Monero is noted for its privacy features, whereas XRP’s impressive performance aligns with its targeting by investment funds.

[1] Source: CoinDesk, April 2023[2] Source: The Block, March 2023

Read also:

    Related

    Latest