French bank Société Générale will provide liquidity for 21Shares’ Bitcoin and Ethereum-backed ETPs in Germany and Eastern Europe, strengthening institutional investors’ access to cryptocurrencies.
The agreement provides for a market maker and OTC liquidity provider role on ABTC, CBTC, AETH and CETH products.
Société Générale, the world’s 19th largest bank by assets with approximately $1.7 trillion in 2023, is expanding its footprint in the cryptocurrency market. It has just formalized a partnership with 21Shares, a leading issuer of exchange-traded crypto products (ETPs), to provide liquidity for several of its funds in Europe.
As a reminder, ETPs (Exchange-Traded Products) are financial products listed on the stock exchange that allow investors to easily invest in an asset, such as Bitcoin or Ether, without having to hold it directly. They replicate the performance of that asset (in this case, cryptocurrencies) and are traded on the market like traditional stocks.
They are a simple and regulated way to access crypto, which is appreciated by institutional investors. Société Générale’s role in this partnership will be to provide liquidity and better execution for 21Shares’ ETPs for professional investors. Alistair Byas-Perry, Global Head of Capital Markets and Investments EMEA at 21Shares, is delighted:
We are delighted to partner with Société Générale, a major player in ETFs in Europe, as we continue to expand access to our ETPs. By providing liquidity to our Bitcoin and Ethereum ETPs, Société Générale is helping us advance our mission to offer the most efficient and reliable crypto investment solutions.
On the French bank’s side, Martina Schroettle, Head of ETF Sales Trading in the UK, spoke of a “significant step” in offering “innovative liquidity” solutions on ETFs and ETPs for clients.
Société Générale’s new strategy in response to MiCA
This partnership did not come out of nowhere. For several months, Société Générale has been gradually building its new crypto strategy. The goal: to integrate crypto assets into traditional banking services in Europe. In 2024, the bank had already reached out to Bitpanda to promote its in-house stablecoin, the EUR CoinVertible (EURCV), through its blockchain subsidiary Société Générale-FORGE.
As a reminder, the second part of the European MiCA regulation, which governs crypto-asset service providers, came into force on December 30, 2024, with a transition clause until July 1, 2026 for players already registered. This clearer regulatory environment encourages banks to offer institutional crypto products.
