21Shares Quietly Upgrades Its Most Critical Infrastructure

In Brief

• 1Shares expanded its partnership with BitGo for regulated custody and staking.
• The upgrade covers crypto ETP products across the U.S. and Europe.
• Institutional infrastructure now outweighs exposure as a differentiator.

Crypto ETP issuer 21Shares has expanded its partnership with BitGo, and the implications run deeper than a routine service update.

Specifically, the agreement now includes regulated custody and staking services across the United States and Europe.

As a result, 21Shares strengthens the operational backbone of its products at a time when institutions scrutinize infrastructure more than exposure.

At first glance, the move looks incremental. However, beneath the surface, it signals a strategic shift.

21Shares already solved distribution through exchange-traded access. Now, it reinforces the layers that investors rarely see but always assess.

Consequently, custody, compliance, and security move from support functions to core differentiators.

Importantly, this decision does not chase short-term yield. Instead, it prioritizes durability. That choice reflects how institutional crypto products now evolve.

Why Regulated Custody Now Drives Institutional Confidence

To begin with, custody remains the primary risk vector in digital assets. Private keys demand constant protection. Transactions settle irreversibly. Mistakes carry no rollback.

Therefore, institutions insist on qualified custodians with regulatory oversight.

Here, BitGo’s footprint matters. It operates regulated entities in the United States and across Europe. Because of that reach, 21Shares can standardize custody across jurisdictions.

As a result, audits align. Reporting simplifies. Compliance teams gain consistency.

Moreover, regulated custody unlocks participation. Many asset managers cannot allocate capital without a qualified custodian.

By anchoring products to BitGo’s framework, 21Shares lowers that barrier. Consequently, investment committees move faster. Risk officers gain clarity. Capital flows face fewer structural blockers.

In short, custody shifts from a defensive necessity to a growth enabler.

Staking With Rules, Not Guesswork

Staking introduces a different layer of complexity. Rewards depend on protocol mechanics. Validators face slashing risk. Operational missteps can erase returns quickly.

Because of this, institutions approach staking cautiously.

Through BitGo, 21Shares embeds staking within defined policies. Assets remain segregated. Reward accounting stays transparent. Governance controls remain explicit.

Therefore, staking aligns with institutional expectations rather than speculative behavior.

As a consequence, staking changes roles. It becomes a portfolio feature, not a side bet. Investors gain exposure to network rewards while preserving oversight.

That balance matters as regulated crypto products mature.

Furthermore, compliant staking reduces improvisation. Early crypto markets favored speed. Institutions favor predictability. This partnership clearly favors the latter.

“BitGo was selected due to the firm’s track record in regulatory compliance, safety and security, and we are thrilled to be expanding our relationship across staking and custody services with this important and trusted partner. BitGo’s infrastructure supports our continued growth while maintaining the highest standards of security and governance.”

– Andres Valencia, Head of Investment Management at 21shares

What This Means for the Crypto ETP Market

Stepping back, this expansion reflects a broader market shift. Crypto ETPs no longer compete on access alone. Fees still matter. Liquidity still matters. However, infrastructure credibility increasingly decides outcomes.

At the same time, regulators watch these choices closely.

When issuers pair regulated custody with compliant staking, they demonstrate that crypto can operate within existing frameworks.

As a result, market expansion becomes incremental rather than disruptive.

Ultimately, 21Shares is not chasing attention. Instead, it is reinforcing foundations. In the next phase of crypto investing, that discipline matters. Access draws interest. Infrastructure sustains it.