He has now been CEO of 21Shares for a year, leading the Swiss specialist in crypto-based exchange-traded products (ETPs), with assets under management of around 8 billion dollars. Russell Barlow moved into the crypto sector from the hedge fund industry, together with current chairman Duncan Moir.

Since October 2025, 21Shares has also had a new owner. The two founders sold their stakes to U.S. broker FalconX. fines.ch met with Barlow in Zurich to discuss his first year as CEO, his plans, and the risk of another crypto winter.

Mr. Barlow, are you satisfied with 2025?

Yes. Even though we do not disclose figures, I can say that in terms of revenues it was the best year 21Shares has ever had.

What has kept you busiest over the past twelve months?

From a market perspective, it was about deepening discussions with existing and potential clients to improve understanding of the role and characteristics of crypto, and to explain why the asset class belongs in a diversified portfolio. From a business perspective, identifying new growth markets was the priority. Operationally, the challenge was to leverage FalconX’s infrastructure in a way that allows us to generate synergies in growth and revenues.

Will 21Shares be fully integrated? And what does the acquisition mean for Switzerland as a location?

No. FalconX knows that they derive the greatest value if we continue to operate independently under our own brand. The value for our new parent company lies in diversifying its offering and revenue streams. Of course, we use FalconX’s extensive infrastructure to scale and become even more efficient. 21Shares remains a Swiss company, loyal to its home base, with headquarters in Zurich.

«FalconX knows that they derive the greatest value if we continue to operate independently under our own brand.»

What does your strategy for 2026 look like?

First, and this will surprise no one, we want to strengthen our positioning in the growth markets of the US and the UK. In the US, the Trump administration has taken a much more open stance towards Bitcoin and other crypto assets. In the UK, the regulator lifted the ban on crypto assets for retail investors in October 2025, which led to inflows into ETPs. A second focus is regulatory approvals. We want to obtain a Finma licence in Switzerland and are reviewing whether to apply for similar licences in other jurisdictions.

What do you expect from that? Licensing processes are neither cheap nor easy.

This is linked to a third innovation we have planned for 2026. Over recent years, 21Shares has successfully enabled investors to gain low-cost, straightforward access to the beta of the crypto asset class through ETPs. But the market has evolved, and client expectations are growing and changing. That is why we are now taking the next step: this year, we will launch active ETPs.

Isn't that a fundamental break with the passive investment philosophy in crypto that made 21Shares big and well known?

We will of course continue to offer passive products, and we do not expect active ETPs to attract huge volumes quickly. But, as we did in the passive space, we want to be first movers. That means launching the products now so that clients can see a track record in a few years’ time. In this way, we gradually build trust in what is still a relatively new instrument in the crypto space.

«As we did in the passive space, we also want to be first movers in active products.»

You say the market has evolved. What exactly do you mean by that?

Today, crypto assets are still often lumped together—either everything performs well or everything performs badly. As the market matures, differentiation increases: business models are analyzed more closely to assess whether they are viable or not. In such an environment, with winners and losers, active strategies perform better. Specifically, an active ETP could still be based on an index of different crypto assets, but allow for deliberate deviations from the index composition. The next step would be to enable, much. like in today's equity markets, simple ways to take short positions in specific crypto assets, though that is still some way off. After seven years in the passive ETP space, 21Shares has the credibility required to successfully expand its offering in this way.

Are you also taking this step because competition in the passive space is becoming increasingly intense? There are already 20 crypto ETP issuers in Switzerland, and BlackRock entered the market in 2025.

No, that was not the reason. However, the intensified competition you mention and the entry of large, established players are part of market maturation. BlackRock gives the asset class credibility and acceptance. Crypto assets are no longer a niche product; they are increasingly part of the mainstream and thus of strategic asset allocation. And more competition is good for clients, even though we expect consolidation in the medium term.

Will 21Shares play an active role in that consolidation?

At present, as mentioned, other topics are our priority. But we rule nothing out and will seize attractive opportunities.

Aren't you painting an overly positive picture? If, for example, a Swiss pension fund wants to build a Bitcoin position via ETP, wouldn't it choose BlackRock over 21Shares simply because it knows the institution much better?

I see that differently. Pension funds have structured investment processes and usually invite several providers when building an allocation. In ETPs, we have been the market leader in Switzerland and Europe for seven years, with more than 50 products and extensive experience. We have a long track record across the entire value chain, including custody. Our chances in such a beauty contest are therefore good.

«Our chances in a beauty contest for pension funds are good.»

Does the sharp market correction since October 2025 not concern you at all? It came at a time when many fundamental factors seemed supportive for Bitcoin, such as growing acceptance and inclusion in asset allocation.

Nothing goes straight up forever. Our research team warned investors early about the risk of a correction, and for technical reasons we were cautious on Bitcoin, even though we did not foresee the magnitude of the pullback. We have experienced several shorter and longer bear markets. And even during the latest correction—which is painful, but probably healthy in the long term—we remained accessible and available for our clients. The fundamental factors you mentioned remain intact, but experience shows that recovery can take several months.

What did not look right from a technical market perspective?

Large Bitcoin holders sold parts of their holdings, and there were significant outflows from U.S. ETFs as investors sought liquidity amid a shift in overall sentiment. However, we do not believe this marks the beginning of a prolonged crypto winter. Rather, it appears to be an opportunity to enter the asset class at relatively attractive levels.

Do you share concerns that there is still too much leverage in the crypto system and that forced selling due to margin calls could put pressure on prices, as seen in equity markets?

No. The majority of the so-called deleveraging has already taken place. And unlike equities, Bitcoin holdings are now only selectively used as collateral for loans. Where this is the case - typically among long-term investors seeking liquidity for other investments - standards and loan-to-value ratios are sensible.

«The structural trend in Bitcoin remains intact. It supports prices, stabilizes the market and dampens volatility.»

What do you think of the greater fool theory, which suggests that insured investors exit overvalued assets by selling them to less sophisticated investors?

What speaks against that is that adoption of crypto assets has followed a different pattern. Normally, large institutional investors enter a new asset class first, with retail investors following later - often not at the best time. In crypto, it was the other way around: retail investors came first. Only in recent months have institutions invested substantial amounts. The investor base is therefore shifting towards fewer retail investors and more institutions - including well-known names such as the Harvard Endowment. These investors have longer time horizons and tend to stick closely to their asset allocation. This structural trend, which supports prices, stabilizes the market and dampens volatility, remains intact.