For most Bitcoin OGs in the space, the main crypto investment strategy has always been ‘HODL’, which has been enough to outperform most assets in certain periods.
Early asset managers entering the sector also employed a similar passive strategy for their respective crypto ETFs (exchange traded funds). They held onto the crypto assets hoping that their value would increase in three, six or twelve months.
However, according to Duncan Moir, president of 21Shares, crypto ETFs are moving from passive management to active strategies. Moir noted that the sector was an ’emerging’ and ‘growing asset class’ that was a perfect fit for active management.
The core of this new strategy is scaling revenue streams and additional earning opportunities beyond just holding the crypto assets. Based on regional demand for crypto ETFs, Moir said:
Interest continues to focus on the larger US coins. In Europe, institutional clients are more interested in newer assets and the application layer beyond Layer-1.
On a year-over-year (YTD) basis, the US leads with $638 million in crypto inflows, closely followed by Germany with $377 million and Switzerland with $233 million.
Evolution and diversification of crypto ETFs
For Moir, the mature investor base in Europe, who already own Bitcoin and Ethereum, is looking to expand their crypto allocation with better offerings.
This led to 21Shares launching an ETP tied to Strategy’s preferred shares. Racks (STRC)that offers an annual dividend yield of up to 11.5%, payable monthly. This is one of the Strategy’s ways to raise capital for Bitcoin purchases.
Moir noted that the product was an immediate success in several regions, underscoring the strong demand for yield-bearing assets that are feasibly accessed through traditional platforms.
Additionally, crypto ETF staking rewards have become another active strategy to maximize investor returns.
Grayscale and BlackRock’s push to stake rewards in their respective Spot ETH ETFs is an example of asset managers looking to expand opportunities for investors.
Finally, Moir said they also look for key thematic trends or future shifts that can be maximized. This approach formed the basis for the launch of 21Shares’ Bitcoin-and-gold ETPbased on rising demand for safe havens amid debasing trade and rising US budget debt.
It remains to be seen how the new active strategy will drive demand for crypto ETFs. At the time of writing, total crypto ETF assets under management stood at approximately $130 billion, down from nearly $240 billion at the 2025 peak.
Final summary
- Duncan Moir of 21Shares said active strategies will be central to the next crypto ETF management.
- Yield-oriented wrappers and staking rewards are some active strategies that asset managers deploy for investors.