Crypto ETP Volumes Soar 91%, Outpacing Underlying Assets: Report
Global cryptocurrency exchange-traded products (ETPs) will see significant growth in 2023, outpacing growth in underlying assets, according to a report by digital asset platform Fineqia published by Cointelegraph.
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, Fineqia reported.
As cryptocurrencies had a comparatively slow growth of around 70% over the same period, the boom in crypto ETPs outpaced the growth of digital assets by 30%.
Fineqia's research included a total of 168 crypto ETPs currently issued based on ETP AUM data from sources such as 21Shares, Grayscale Investment, VanEck Associates and others.
“The research includes all products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree and other issuers,” a spokesperson for Fineqia told Cointelegraph.
“The data is updated on the first business day of every month; so they publish the data at the end of the previous month,” said Phoenicia Research Analyst Matteo Greco. They will accumulate every month from August 2022,” he said.
Fineqia compares the difference between the increase in crypto ETP AUM and the increase in the crypto market compared to its share in the general market, with a large amount of digital value ETP in Bitcoin (BTC). According to the study, Bitcoin accounts for 75% of the total crypto ETP AUM. In contrast, Bitcoin's share of the crypto market has been around 50% for the past year, according to data from CoinGecko.
At the same time, Bitcoin is one of the biggest earners in the crypto market, growing 104% between January 1 and October 31, 2023. Ether (ETH), the second largest cryptocurrency by market cap, also increased. 50% in the same period according to CoinGecko data.
According to Fineqia, crypto ETP AUM hit $38 billion in October, up 25% month-on-month and hitting the highest figure since May 2022. The total cryptocurrency market capitalization also increased by 17% in October, from $1.15 trillion to $1.35 trillion. .
Related: CoinShares acquires buyout rights for Valkyrie's crypto ETF unit
According to Bundeep Singh Rangar, CEO of Phoenicia, the volatility in the crypto ETP market and the overall crypto markets reflects the excitement surrounding the possible arrival of Bitcoin Exchange Traded Fund (ETF) in the United States. he said:
“Smoke signals have emerged for Bitcoin Spot ETF opportunities and recent approvals. The market is readily responding to this positive signal.
The news is that 12 Bitcoin ETF applications from companies such as 21Shares and WisdomTree are awaiting a decision by the US Securities and Exchange Commission (SEC). In mid-November, the SEC delayed approval decisions on three other spot Bitcoin ETF applications by companies such as Franklin Templeton, Hashdex and GlobalX.
On November 15, Franklin Templeton and Hashdex, the deadline previously set for November 17, was delayed by the SEC to January 1, 2024. The SEC is asking the company to file a rebuttal within the next 35 days or by December 22.
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