In a recent episode of “Behind the Ticker,” Federico Brokate, Head of U.S. Business at 21Shares, shared insights into the firm’s approach to digital asset ETFs, including their products ARKB (Spot Bitcoin ETF) and CETH (Spot Ethereum ETF). Having joined 21Shares three months ago, Brokate brings a wealth of experience from his ten-year tenure at BlackRock, where he focused on U.S. ETFs. 21Shares, headquartered in Zurich, is dedicated to making digital assets more accessible through innovative products and has been rapidly expanding with over 50 products in 16 global markets.
Brokate explained that 21Shares was founded in 2016 with a clear mission to bridge the gap between traditional finance and digital assets. The company’s founders, inspired by their mothers’ interest in Bitcoin, realized there was no easy way for retail investors to access digital assets without understanding the complexities of wallets, keys, and encryption. This led to the creation of 21Shares’ digital asset ETPs, which now offer institutional-grade products in both Europe and the U.S.
Regarding the current digital asset landscape, Brokate highlighted the tremendous success of Bitcoin ETFs, noting that digital asset ETFs, including 21Shares’ ARKB, have become some of the fastest-growing ETFs in history. He emphasized the importance of educating advisors and clients, particularly in the wealth advisory and institutional spaces, where interest in digital assets is rising but knowledge gaps remain. He mentioned that a significant portion of digital asset ETF holders are retail investors, but interest from institutional investors and wealth advisors is growing steadily.
Brokate also discussed the operational aspects of 21Shares’ products, explaining that both ARKB and CETH utilize a multi-custodial model with custodians like Coinbase, Anchorage, and BitGo to reduce single points of failure and ensure robust operational security. He noted that 21Shares is the only issuer currently offering this level of transparency, allowing investors to verify the holdings of each product through a partnership with Chainlink, which provides proof of reserve technology. This transparency, combined with the firm’s experience in managing digital asset products, has positioned 21Shares as a leader in the space.