The main crypto investment strategy for most Bitcoin OGs in the space has always been ‘HODL’ and this has been enough to outperform most assets during certain periods.
The first asset managers to enter the industry adopted a similar passive strategy for their crypto ETFs (exchange-traded funds). They hold crypto assets in the hope that their value will increase in three, six or 12 months.
But crypto ETFs are shifting from passive management to active strategies, according to 21Shares president Duncan Moir. Moir noted. that the sector is a ‘nascent’ and ‘growing asset class’ perfectly suited to active management.
The core of this new strategy is scaling return streams and extra earning opportunities beyond just holding crypto assets. Moir said of a regional crypto ETF request:
Interest still focuses on the larger coins in the United States. In Europe, enterprise customers are more interested in newer assets and the application layer beyond Layer 1.
In fact, on a year-to-date (YTD) basis, the United States leads the way with $638 million in crypto inflows, followed by Germany with $377 million and Switzerland with $233 million.
Evolution and diversification of crypto ETFs
Europe’s mature investor base, which already holds Bitcoin and Ethereum, is looking to expand their crypto allocations with better offerings, according to Moir.
This led 21Shares to launch an ETP tied to Strategy’s preferred stock. Stretch (STRC)It offers an annual dividend yield of up to 11.5%, payable monthly. This is one of the ways the Strategy raises capital for Bitcoin purchases.
Moir noted that the product was an instant success across a number of regions, highlighting a strong appetite for return-generating assets that can be conveniently accessed through traditional platforms.
Additionally, crypto ETF staking rewards have become another active strategy for investors to maximize their returns.
Grayscale and BlackRock’s effort to stake rewards in their respective Spot ETH ETFs is an example of asset managers seeking more opportunities for investors.
Finally, Moir said they also look for important thematic trends or future shifts that can be maximized. This approach led to the launch of 21Shares Bitcoin and gold ETPThis is based on increased demand for safe havens due to undervalued trading and rising US financial debt.
It is not yet known how the new active strategy will increase demand for crypto ETFs. As of writing, total crypto ETF assets under management (AUM) have fallen from around $240 billion at the peak of 2025 to around $130 billion.
Final Summary
- 21Shares’ Duncan Moir says active strategies will be at the center of the next crypto ETF management.
- Yield-focused wrappers and staking rewards are some of the active strategies that asset managers are implementing for investors.
