Recent M&A activity brings together firms from both sides of the Atlantic. | Credit: Werner Pfennig. Key Takeaways FalconX is set to acquire 21shares. The deal follows Bitwise’s acquisition of ETC Group last year. Meanwhile, CoinShares is targeting U.S. expansion via a Nasdaq listing. A series of mergers and acquisitions has targeted the crop of asset managers that pioneered crypto Exchange-Traded Products (ETPs) in Europe. In the latest instance of the trend, FalconX is set to acquire 21shares, ...

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are up on Monday after the U.K.'s Financial Conduct Authority lifted its four-year retail ban on crypto exchange-traded notes, allowing 21Shares, Bitwise, and WisdomTree to open access to British investors.FCA Opens Doors To Retail InvestorsThe move marks a milestone for U.K. digital asset regulation, expanding access to physically backed Bitcoin and Ethereum exchange-traded products (ETPs) beyond institutional buyers.Asset managers 21Shares, Bitwise, and Wis ...

Core Insights - A suite of eleven retail-friendly crypto exchange-traded products (ETPs) debuted on the London Stock Exchange (LSE) on October 20, 2023, following a recent regulatory change that allows retail investors access to these products for the first time since 2021 [1][5] Group 1: Market Access - Prior to October 8, 2023, crypto ETPs in the U.K. were restricted to qualified investors, limiting access for the average retail investor [2] - The new offerings from asset managers such as WisdomTree, 21Shares, and Bitwise are now available on the LSE's main market, allowing retail investors to access them through their brokerage platforms [2][5] Group 2: Product Offerings - WisdomTree offers one ETP for Bitcoin and one for Ethereum, while 21Shares and Bitwise provide a more diversified range of products catering to both short- and long-term investors [3] - BlackRock's iShares Bitcoin ETP (IB1T) also launched on the LSE, marking its entry into the U.K. crypto investment market [3] Group 3: Fee Competition - In response to the launch of retail crypto ETPs, several asset managers have reduced fees to attract investors, with promotions running until the end of the year [4] - Bitwise has set its Core Bitcoin ETP fees at 0.05% until March 31, 2026, and has suspended fees on its flagship Ethereum product "until further notice" [4][6] - A full list of ETPs and their fees includes various offerings from Bitwise, 21Shares, and WisdomTree, with fees ranging from 0.00% to 2.00% [4][6]

Core Insights - Crypto investment products are experiencing record inflows due to a regulatory shift in the U.K. that allows retail investors to buy crypto-linked exchange-traded notes (cETNs) for the first time in four years [1][3] - The U.K. Financial Conduct Authority (FCA) has lifted a ban on retail access to cETNs, citing significant market evolution and improved consumer protections [4][5] Record Inflows - European crypto exchange-traded products (ETPs) saw net inflows of €972 million in Q3 2025, marking the highest quarterly total on record [2][8] - Total inflows for the year have reached €1.7 billion, positioning 2025 to be a record year for the crypto ETP market [2] Regulatory Changes - The FCA's decision to lift the retail ban aligns the U.K. with regulatory frameworks in the EU and the U.S., reflecting a more mature market [3][4] - The FCA noted that the market has evolved significantly, with better product understanding and consumer protections since the ban was imposed [5] Market Impact - Bitcoin-focused ETPs account for nearly half of all crypto ETP assets under management in Europe, indicating strong demand [6] - The FCA's decision is expected to open access to millions of new investors and potentially billions of pounds in inflows for asset managers [6] Caution on Volatility - Despite the positive outlook for crypto adoption, analysts caution that the extreme volatility of crypto assets means that retail access may not be suitable for all investors [7][9]

Core Viewpoint - The crypto market is poised for a significant rally as the SEC prepares to introduce generic listing standards for crypto exchange-traded products (ETPs) [1][4]. Group 1: Market Outlook - Macro and structural factors are aligning for a strong year-end rally in the crypto market, despite September being historically weak for digital assets [3]. - Potential interest rate cuts, increasing inflows into crypto investment products, concerns over dollar strength, and rising momentum in stablecoins and tokenization are identified as key drivers for this rally [3]. Group 2: Regulatory Developments - The SEC's proposal for generic crypto ETP listing standards could streamline the approval process, allowing issuers to launch ETPs within as little as 75 days if the underlying asset meets specific criteria [4]. - This regulatory change could lead to a surge in new ETP offerings, with assets like Solana, XRP, Avalanche, Dogecoin, and Chainlink potentially qualifying quickly [5]. Group 3: Company Initiatives - Bitwise has filed for a spot Avalanche ETF, aiming to provide institutional investors with regulated exposure to AVAX, joining other firms like VanEck and Grayscale in this initiative [5][8]. - The fund will track the CME CF Avalanche-Dollar Reference Rate and will be backed by AVAX tokens held in custody by Coinbase Custody [5][6]. Group 4: Historical Context - The expected boom in crypto ETPs is compared to the surge in traditional ETF issuance following the SEC's adoption of the "ETF Rule" in 2019, which tripled ETF launches in the U.S. and made the market more accessible [7].

Core Insights - Virtune has appointed Benedict von Lucke as Country Manager for Germany, marking a strategic move in its European expansion and commitment to accessible crypto investments [1][4] Company Overview - Virtune is a regulated Swedish digital asset manager and one of the fastest-growing issuers of crypto ETPs in Europe, with a product portfolio of 18 ETPs and USD 475 million in assets under management [7] - The company is trusted by over 140,000 investors, with products listed on major exchanges including Deutsche Börse Xetra and Nasdaq [7] Leadership Appointment - Benedict von Lucke brings extensive international experience in asset management, particularly in ETFs and ETPs, having worked with PIMCO and Columbia Threadneedle Investments [2] - His knowledge of the German market and international financial landscapes positions him to effectively lead Virtune's growth strategy in Germany [3] Market Strategy - With the growing demand for regulated crypto investment products, Virtune aims to build trust and provide tailored solutions for investors [5] - Benedict will focus on ensuring German investors have access to Virtune's expanding range of crypto ETPs while fostering education and long-term partnerships [5][6]

Core Insights - Global exchange-traded product (ETP) assets remained resilient, holding above $200 billion for the second consecutive month in August, indicating strong investor appetite for regulated crypto products [1][3][5] - The divergence between Bitcoin and Ethereum products is attributed to temporary market phases rather than a structural shift, with Ethereum experiencing record inflows [6][9] ETP Market Dynamics - Bitcoin ETP assets under management closely mirrored the 6.5% decline in Bitcoin's price in August, showing stability compared to the more price-sensitive crypto-native investors [4][5] - Ethereum ETPs attracted nearly $10 billion in inflows over two months, driven by strong price performance and increased institutional interest [8][9] Investor Behavior - The current market cycle has seen a shift towards altcoins, with Ethereum leading the charge, while Bitcoin's dominance remains intact [7][11] - Altcoin ETPs have increased by 30% this year, indicating a growing risk appetite among investors for single-asset exposure rather than diversified basket products [10][11] Future Catalysts - Potential catalysts in the ETP space include the approval of additional crypto assets by the US SEC, which could lead to new staking products and broaden the range of offerings [2][12] - The evolution of yield strategies in Europe, particularly the integration of decentralized finance (DeFi) into structured products, is being explored by companies like Fineqia [2][13][14]

Core Insights - 21Shares has published its mid-year 2025 report, highlighting significant developments in the cryptocurrency market and validating its earlier predictions for the year [1][2] Group 1: Market Developments - The report indicates that nation-states are increasingly adopting Bitcoin as a strategic reserve asset, with the U.S. becoming the largest public holder with over 200,000 BTC [4] - Total assets under management (AUM) in global crypto ETPs have reached $180 billion, with a potential rise to over $250 billion if macro conditions improve, reflecting a 38% increase in valuations [4] - Solana is gaining market share against Ethereum, with real economic value narrowing the gap significantly from $73 million vs. $142 million in October 2024 to $30.5 million vs. $39 million in June 2025 [4] Group 2: Regulatory Changes - Many jurisdictions are reconsidering retail crypto bans, with the UK moving to lift the retail ban on crypto ETNs and Japan proposing to legalize Bitcoin ETFs [4] - South Korea has lifted its corporate crypto trading ban and is preparing to open the door to crypto ETFs, indicating a shift towards more favorable regulatory environments [4] Group 3: Stablecoin Adoption - Stablecoin AUM has reached an all-time high of $252 billion, with 35.7 million active addresses, showcasing the growing adoption by nation-states, financial institutions, and Web2 companies [4] - The GENIUS Act in the U.S. is gaining momentum for stablecoin legislation, while Hong Kong has launched a stablecoin sandbox and Thailand is piloting a retail baht-backed stablecoin [4]