Industry Updates

CoinShares and 21Shares close FTX ETPs

VanEck FTX ETP remains suspended

Theo Andrew

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CoinShares and 21Shares have terminated their FTX exchange-traded products (ETPs) following the dramatic collapse of Sam Bankman-Fried’s crypto exchange last month.

The 21Shares FTX Token ETP (AFTT) and the CoinShares FTX Physical FTX Token (CFTT) ceased trading on the Six Swiss Exchange on 17 November and 24 November, respectively.

The only other remaining FTX ETP, the VanEck FTX Token ETN (VFTX), remains suspended.

21Shares said it distributed liquidation proceeds to investors on 22 November while CoinShares have set a compulsory redemption date for 19 December.

"CoinShares will, as of December 19, sell the FTT it holds (if possible) and then deliver any cash proceeds to investors," Townsend Lansing, head of product at CoinShares said. 

All three issuers suspended creations after market makers said they could no longer provide intraday pricing on FTX’s underlying token FTT, which lost 94% of its value in the seven days to 15 November.

“Due to the extensive difficulties confronting FTX, many market makers and exchanges stopped supporting its coin, FTT. Once the underlying FTT market stopped functioning, our ETP - CFTT - could no longer function. As a result, we suspended trading on Xetra and BX Swiss and announced a compulsory redemption," Lansing added. 

Concerns were raised over “abnormalities with wallet movements” which saw $650m withdrawn from FTX funds, prompting the hacking allegations.

21Shares said it requested the suspension of the product after it emerged the company went into bankruptcy.

When asked about whether VanEck may follow with VFTX, a spokesperson said: “VanEck has not delisted the VanEck FTX Token ETN.

“The trading for the product is currently suspended but it is not delisted nor liquidated. If anything changes, we would like to refer our clients to the market announcements page on the VanEck website.”

The crypto ETP market has continued to be in turmoil since the collapse, with Bitpanda withdrawing its range from the market and Eqonex delisting its bitcoin ETN.

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