ETP issuer 21Shares is expanding its partnership with BitGo to add custody and Staking services in the US and Europe, managing over $5 billion in crypto assets.
The agreement, announced on Thursday, marks a significant step in professionalizing cryptocurrency investment products. 21Shares , one of the world's leading exchange-traded product (ETP) issuers, is leveraging BitGo Holdings' institutional-grade infrastructure to strengthen its product portfolio.
Accordingly, BitGo will act as the qualified custodian, transaction execution partner, and Staking service provider for ETP products listed on both strategic markets.
With its expanding product portfolio featuring dozens of ETPs across global exchanges, 21Shares needs to strengthen its operational infrastructure to meet growth demands. BitGo will ensure the secure storage of crypto assets for its US- Exchange Traded Fund ( ETPs) and European ETPs.
The company also added liquidation and transaction support capacity, giving 21Shares easier access to electronic markets and decentralized exchanges, thereby handling large-volume transactions and minimizing latency when moving large-scale crypto assets.
The trend of integrating Staking into investment products.
The key to the agreement lies in its ability to generate Staking rewards while ensuring the security of deposited assets, meeting the growing demand from institutional investors seeking both profitability and a high level of security. 21Shares' decision to choose BitGo was based on the partner's strong compliance record, high security standards, and prudent governance approach.
This move reflects a broader trend of traditional investors entering the cryptocurrency market through managed products rather than directly holding Token. Financial institutions are now focusing more on Staking rewards – a mechanism that allows for generating returns by participating in supporting a network using proof-of-stake consensus mechanisms, but within a clear legal framework with high custody standards.
The market is witnessing many similar moves. Coinbase partnered with Figment to expand its custodial-based Staking services for assets like Solana and Avalanche, even though the largest US exchange recorded a net loss of $667 million in the last quarter of last year, compared to a profit of $1.3 billion in the same period of 2024.
Anchorage Digital adds Staking services through licensed entities, while Ripple integrates with banking and custodian tools. Liquidation Staking is also attracting significant interest due to its ability to generate rewards while maintaining liquidation, allowing assets to continue to be traded and used in the borrowing market.
The developing relationship between BitGo and 21Shares demonstrates the trend of cryptocurrency investment products being regulated within a stricter legal framework, integrating Staking rewards alongside secure custody within a standardized institutional infrastructure.
