21Shares has expanded its partnership with BitGo to offer regulated custody and integrated staking for its cryptocurrency exchange-traded products (ETPs) in the United States and Europe. The agreement combines BitGo’s capabilities with 21Shares’ infrastructure.
The collaboration between 21Shares and BitGo is structured around three pillars aimed at delivering institutional-grade products. First, qualified, regulated, and insured custody that guarantees asset segregation and compliance with the standards demanded by professional investors.
Second, an integrated staking infrastructure within the custody framework itself, designed to generate rewards on the underlying assets of the ETPs. Finally, access to deep liquidity and execution in both electronic and OTC markets, with the goal of optimizing price discovery and operational efficiency.
According to the announcement, integrating staking within regulated custody allows 21Shares to offer additional returns on its ETPs without requiring investors to manage validators or private keys. In this way, the technical component of staking is encapsulated within an institutional architecture, reducing operational friction and barriers to entry for funds, banks, and wealth managers.
BitGo’s regulatory approvals in the United States and Europe were cited as a key factor in mitigating regulatory risks and strengthening institutional confidence. Consequently, the combination of secured custody, integrated staking, and execution capabilities aims to align with the compliance, audit, and risk management requirements of professional portfolios.
Regulated performance and objectives of 21Shares with BitGo
The agreement also introduces a significant shift in the crypto ETP economy. By adding a performance component via custodial staking, the products can offer a more competitive value proposition compared to traditional passive vehicles. However, this improved performance profile remains within a framework that preserves asset segregation and secured coverage, critical elements for institutional capital.
On the other hand, expanded access to execution channels, both on electronic markets and OTC desks, could influence the liquidity dynamics of the tokens underlying 21Shares ETPs. As more assets become eligible for custodial staking, circulating supply patterns and availability in secondary markets could change, impacting spreads and market depth.
Ultimately, the alliance positions 21Shares and BitGo as comprehensive infrastructure providers for investors seeking exposure to crypto assets with regulatory compliance and additional returns. If the model scales, it could catalyze new flows into crypto ETPs, reinforcing the convergence between traditional finance and digital assets under institutional operating standards.
