Exchange-Traded Product Provider 21Shares AG Slashed Its HODL ETP Fees

21Shares AG, a leading crypto exchange-traded product provider, slashed its HODL ETP fees from 2.5% to 0.99%.

Crypto exchange-traded product provider 21Shares announced on Tuesday that it slashed the fees for its flagship HODL ETP.

Its broadly diversified crypto index product will now have an annual management fee of 0.99%. Previously, the fee was set at 2.5%.

The change is effective immediately as of 07:00 UTC.

The lower fees will allow investors to keep more of their gains. This will make crypto exposure via traditional brokerages cheaper for both retail and institutional investors in the European Union.

Moreover, 21Shares stated that HODL will transition from a monthly to a quarterly rebalancing schedule starting June 20.

This will help the firm stay aligned with the preferences of its long-term investors while reflecting better market dynamics.

Mandy Chiu, head of financial product development at 21Shares, expects to see a notable increase in its ETP inflows following the latest fee reduction.

“We anticipate even greater participation in the crypto market as a result of this move. We're committed to offering competitive and innovative products that cater to the evolving needs of investors,” said Chiu.

21Shares’ HODL enables investors to diversify their crypto exposure. The product tracks the prices of some of the leading cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and BNB.

The Switzerland-based company claims that HODL is 100% backed by digital assets held in cold storage by a regulated, institutional-grade custodian.

The move also highlights the growing maturity and competition in the crypto ETP market.

Last month, 21Shares launched an ETP on SIX Swiss Exchange that provides exposure to Dogecoin.

21Shares also has a joint crypto investment product with ARK Invest, a US-based asset management company, called ARK 21Shares Bitcoin ETF (ARKB).

Since its launch in January 2024, ARKB has brought over $2.7 billion in net inflows.