- There has been a significant increase in global cryptocurrency exchange-traded products (ETPs) in 2023, surpassing the growth in asset fundamentals.
- A spokesperson for Fineqia stated, “The research includes all products issued by 21Shares, Grayscale, CoinShares, ETC
Group, VanEck, WisdomTree, and other issuers.” - According to Fineqia, the AUM of crypto ETPs reached $38 billion in October, marking a 25% monthly increase and reaching its highest level since May 2022.
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A recent research report indicates that crypto ETP products have shown strong performance this year: Details of the research report!
How Are Crypto ETP Products Progressing in 2023?
There has been a significant increase in global cryptocurrency exchange-traded products (ETPs) in 2023, surpassing the growth in asset fundamentals. According to Fineqia’s report, crypto-based ETPs issued by companies such as 21Shares, Grayscale, and CoinShares recorded a 91% increase in total assets under management (AUM) from January 1 to October 31, 2023.
According to Fineqia’s report, the rise of crypto ETPs outpaced the approximately 70% growth rate in crypto assets during the same period, achieving a 30% difference. Fineqia’s research includes a total of 168 crypto ETPs currently issued, based on AUM data from 21Shares, Grayscale Investment, VanEck Associates, and other sources.
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A spokesperson for Fineqia said, “The research includes all products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree, and other issuers.” Fineqia’s research analyst Matteo Greco mentioned, “The data is updated on the first business day of each month; therefore, they reflect the end of the previous month.” He added that the data is collected when official sources and issuers’ websites do not have the information. The analyst stated, “All data has been compiled into an electronic spreadsheet every month since August 2022.”
Fineqia attributed the increase in crypto ETP AUM to be greater than the growth in the crypto market to the larger share of Bitcoin in digital asset ETPs compared to its overall market share. According to the research, Bitcoin constitutes 75% of the total crypto ETP AUM. In contrast, data shows that Bitcoin’s market share in the crypto market has remained around 50% over the past year.
At the same time, Bitcoin has been one of the biggest gainers in the crypto market, with a 104% increase from January 1 to October 31, 2023. The second-largest cryptocurrency by market capitalization, Ethereum, recorded a 50% increase during the same period.
According to Fineqia, crypto ETP AUM reached $38 billion in October, marking a 25% monthly increase and reaching its highest level since May 2022. The total market capitalization of cryptocurrencies also increased by 17% in October, rising from $1.15 trillion to $1.35 trillion.
Expectations for Bitcoin ETFs
Fineqia CEO Bundeep Singh Rangar suggests that the dynamics in the crypto ETP market and the overall crypto markets indicate the excitement about a potential spot Bitcoin exchange-traded fund (ETF) in the United States. Rangar said, “Smoke signals indicate that Bitcoin Spot ETFs are highly likely and imminent for approval in the U.S. The market is responding only to these positive signals.”
This news coincides with a period when 12 spot Bitcoin ETF applications from companies such as 21Shares and WisdomTree are awaiting a decision from the U.S. Securities and Exchange Commission (SEC). In mid-November, the SEC delayed the approval of three spot Bitcoin ETF applications from companies including Franklin Templeton, Hashdex, and Global X. The deadlines for Franklin Templeton and Hashdex were initially set for November 17, but the SEC requested companies to submit their appeals by January 1, 2024, or no later than December 22.
