Wall Street’s Altcoin Play: Bitwise and 21Shares Push Altcoin ETFs Amid Regulatory Delays
Two major players in the digital asset investment space, Bitwise and 21Shares, have made fresh moves to diversify beyond flagship cryptocurrencies like Bitcoin and Ethereum, signaling growing institutional interest in layer-1 protocols and platform tokens.
21Shares Debuts Cronos ETP in Europe
21Shares announced the launch of a new exchange-traded product (ETP) providing direct exposure to Cronos (CRO), the native token of Crypto.com’s blockchain ecosystem. The product began trading on May 6 across Euronext’s Paris and Amsterdam exchanges. This marks one of the first regulated, exchange-listed vehicles offering European investors access to Cronos, further expanding 21Shares’ portfolio of altcoin ETPs.
The move underscores 21Shares’ strategy of targeting niche blockchain assets with strong market potential and follows a series of similar product launches over the past year aimed at capturing the growing European appetite for diversified crypto exposure.
Bitwise Files for NEAR ETF in the U.S.
Meanwhile, Bitwise took a significant step in the U.S. market with its April 24 filing to establish a Bitwise NEAR ETF Trust in Delaware. The proposed fund would track the market price of NEAR, the native token of the NEAR Protocol—a layer-1 blockchain network focused on decentralized applications and scalability solutions.
According to the firm’s S-1 registration, the ETF intends to provide exposure to NEAR’s value while deducting operational expenses and liabilities. Coinbase Custody Trust Company, LLC has been named custodian, tasked with safeguarding the trust’s holdings, managing its NEAR accounts, and facilitating token transfers.
Further Details To Be Announced
While specifics such as the ETF’s ticker, management fees, and listing exchange remain undisclosed, the filing represents an early procedural milestone. Bitwise must still submit a 19b-4 form to formally trigger the U.S. Securities and Exchange Commission’s (SEC) review process.
An excerpt from the filing notes,
“The Trust’s investment objective is to seek to provide exposure to the value of NEAR held by the Trust, less the expenses of the Trust’s operations and other liabilities.”
Expanding the Altcoin ETF Market
This latest development adds NEAR to Bitwise’s growing roster of altcoin-focused ETFs. The firm, already offering products tied to Bitcoin and Ethereum, is pursuing approval for funds linked to other major cryptocurrencies, including Dogecoin (DOGE), Solana (SOL), XRP (XRP), and Aptos (APT).
A crypto market analyst commented on X,
“Bitwise is betting big on altcoin legitimacy. Wall Street exposure to L1s is getting real.”
The remark highlights a broader industry trend as asset managers look to capitalize on increasing institutional interest in alternative blockchain networks.
Regulatory Outlook Remains Uncertain
Despite a more favorable regulatory environment under the Trump administration, the SEC has maintained a cautious stance toward altcoin-based ETFs. The agency recently delayed decisions on several applications, including those for XRP and DOGE products, with verdicts now expected by mid-June 2025.
This pattern of regulatory hesitation underscores the complexities of expanding the crypto ETF market beyond established assets, even as asset managers continue to position themselves for eventual approvals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
