The world of digital assets continues to evolve at a rapid pace, attracting both institutional and retail investors seeking exposure to high-growth opportunities. Among the most compelling investment vehicles in this space is the 21Shares Crypto Basket Index ETP, traded under the ticker HODL. Designed for simplicity, transparency, and strategic diversification, HODL offers investors a single-access point to the five largest cryptocurrencies by market capitalization.
Backed 100% by physical holdings, this exchange-traded product (ETP) combines the stability of established digital assets like Bitcoin and Ethereum with the upside potential of emerging leaders in the crypto ecosystem.
What Is the 21Shares Crypto Basket Index ETP?
The 21Shares Crypto Basket Index ETP (HODL) is a regulated financial instrument that provides diversified exposure to the top five digital assets. Unlike traditional crypto funds that may rely on derivatives or synthetic replication, HODL is fully backed by actual physical holdings stored in secure custodial environments.
This means each share of the ETP represents direct ownership in a basket of real cryptocurrencies — eliminating counterparty risk and enhancing investor confidence. The underlying assets are rebalanced periodically to reflect current market caps, ensuring alignment with the evolving digital asset landscape.
👉 Discover how diversified crypto exposure can strengthen your investment strategy.
Core Investment Approach
HODL's strategy hinges on balancing stability and growth potential:
- Bitcoin (BTC) and Ethereum (ETH) form the foundational layer, known for their network security, adoption, and resilience through market cycles.
- The remaining three positions are allocated to the next highest-ranked digital assets by market cap, capturing early-mover advantages in innovative blockchain sectors such as decentralized finance (DeFi), scalability solutions, and smart contract platforms.
This blend allows investors to benefit from the long-term strength of blue-chip cryptos while maintaining exposure to high-upside projects shaping the future of Web3.
Key Features and Benefits
Full Physical Backing
One of the most critical differentiators of HODL is its 100% physical backing. Every unit issued corresponds to actual crypto assets held in custody by trusted providers including Coinbase Custody, Copper Technologies, and Zodia Custody. This structure minimizes tracking error and ensures transparency.
Regulatory Compliance and Transparency
Listed on the Cboe BZX Exchange, Inc., HODL operates within a regulated framework, offering greater peace of mind compared to unregulated crypto trusts or offshore funds. Daily reporting of holdings and net asset value (NAV) enables full visibility into fund composition.
Cost Efficiency
Until January 23, 2025, or until assets under management reach $500 million — whichever comes first — 21Shares LLC, the sponsor, will waive its entire management fee. This zero-fee period significantly reduces the cost barrier for new and existing investors looking to gain diversified crypto exposure.
Liquidity and Accessibility
As an ETP, HODL trades like a stock during market hours, providing intraday liquidity without requiring direct interaction with cryptocurrency exchanges. It’s accessible through most major brokerage platforms, making it ideal for traditional investors who want crypto exposure without managing private keys or wallets.
Fund Overview: Key Information
- Product Name: 21Shares Crypto Basket Index ETP
- Ticker Symbol: HODL
- Primary Exchange: Cboe BZX Exchange, Inc.
- Inception Date: November 20, 2018
- Custodians: Coinbase Custody Trust Company, LLC; Copper Technologies (Switzerland) AG; Zodia Custody Limited
- Marketing Agent: Foreside Global Services LLC
- Securities Outstanding: 11,390,000
How Does HODL Compare to Other Crypto Investments?
While standalone Bitcoin or Ethereum ETFs offer focused exposure, they lack diversification. Holding only one or two assets increases volatility risk during sector-specific downturns.
In contrast, HODL’s multi-asset approach spreads risk across leading protocols, reducing dependency on any single network’s performance. Historical data suggests that diversified crypto baskets often outperform single-asset strategies over medium to long-term horizons due to reduced drawdowns and improved recovery rates.
Additionally, because HODL rebalances regularly based on market cap rankings, it automatically adjusts to shifts in leadership within the crypto economy — ensuring investors remain aligned with market trends without active management.
👉 See how professional investors are using diversified crypto products to manage risk.
Frequently Asked Questions (FAQ)
Q: What are the underlying assets in the HODL basket?
A: The basket includes the top five digital assets by market capitalization at each rebalance date. Typically, this includes Bitcoin (BTC), Ethereum (ETH), and three other leading cryptocurrencies such as Binance Coin (BNB), Solana (SOL), or XRP, depending on current rankings.
Q: Is HODL safe from counterparty risk?
A: Yes. Since all assets are physically held in cold storage by reputable custodians like Coinbase Custody and Zodia, there is no reliance on derivatives or third-party promises — minimizing counterparty risk.
Q: How often is the basket rebalanced?
A: The index is reviewed monthly, with rebalancing executed quarterly unless significant market movements trigger an unscheduled adjustment.
Q: Can I hold HODL in a retirement account?
A: Depending on your brokerage and jurisdiction, HODL may be eligible for inclusion in certain tax-advantaged accounts. Check with your financial advisor for eligibility details.
Q: Does HODL pay dividends?
A: No. Cryptocurrencies do not generate income in the traditional sense, so HODL does not distribute dividends. Returns are based solely on price appreciation of the underlying assets.
Q: Where can I view real-time performance data?
A: Performance metrics, NAV updates, and premium/discount analysis are published regularly on the issuer’s official website and via financial data providers like Alpha Vantage and CryptoCompare.
Performance Insights
While past performance does not guarantee future results, historical trends show that diversified crypto baskets like HODL tend to exhibit smoother return profiles than single-asset exposures. The fund’s median bid/ask spread over 30 days remains competitive, reflecting strong liquidity and efficient pricing.
Cumulative performance since inception has demonstrated resilience across multiple market cycles, benefiting from Bitcoin’s dominance while capturing outsized gains from altcoins during bullish phases.
Note: All performance figures exclude fees (currently waived) and are for informational purposes only. Market data sourced from Alpha Vantage and CryptoCompare.
Why Consider Diversified Crypto Exposure Now?
As institutional adoption accelerates and regulatory clarity improves, digital assets are transitioning from speculative instruments to legitimate portfolio components. A diversified approach mitigates idiosyncratic risks associated with individual blockchains while capitalizing on macro-level growth in blockchain innovation.
With its transparent structure, trusted custodianship, and strategic asset selection, the 21Shares Crypto Basket Index ETP stands out as a compelling option for forward-thinking investors.
👉 Start building a diversified digital asset portfolio today.
Final Thoughts
The HODL ETP simplifies access to the dynamic world of cryptocurrency investing. By combining proven leaders with high-potential innovators — all within a secure, regulated framework — it offers a balanced path toward long-term wealth creation in the digital economy.
Whether you're new to crypto or refining an advanced strategy, HODL represents a smart entry point into one of the most transformative financial movements of our time.
Core Keywords: 21Shares Crypto Basket Index ETP, HODL ETP, diversified crypto investment, physically backed crypto ETP, Bitcoin and Ethereum exposure, cryptocurrency market capitalization, regulated digital asset fund