Crypto ETPs Report Massive Growth in 2023, Outperforming Underlying Assets
Summary:
In 2023, the global market for crypto Exchange-Traded Products (ETPs) witnessed substantial growth, exceeding the growth of underlying assets, according to digital asset platform Fineqia. It reported a 91% increase in Assets Under Management (AUM) for ETPs issued by companies including 21Shares, Grayscale, and CoinShares. This growth surpassed that of the primary digital assets by 30%, with these seeing a slower growth rate of 70%. The larger market share of Bitcoin in digital asset ETPs, compared to its overall share in the crypto market, was touted as a key contributor to this discrepancy.
The global market for cryptocurrency Exchange-Traded Products (ETPs) witnessed a significant surge in its dynamics in 2023, growing beyond the rate of the primary assets, as per the findings of a study by digital assets processing platform, Fineqia. According to the study, crypto-based ETPs delivered by firms like 21Shares, Grayscale, and CoinShares showed an impressive gain of 91% in net assets between January 1 and October 31, 2023, as reported by Fineqia. The study also revealed that the growth of crypto ETPs surpassed the increase of the root digital currencies by 30%, as the latter saw a relatively lesser rise of about 70% within the same timeframe.
In its research, Fineqia included a total of 168 crypto ETPs that are currently operational, gathered from ETP net asset data from firms like 21Shares, Grayscale Investment, VanEck Associates, among others. Fineqia's spokesperson conveyed to Cointelegraph, "The research encompasses all the products offered by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree, and other providers." Fineqia's research analyst, Matteo Greco, noted that all data, gathered from official sources or data aggregators when not openly accessible on the issuer's websites, was compiled month by month on a spreadsheet, commencing in August 2022.
The differential in the growth of the crypto ETP net assets and the crypto market, according to Fineqia, is due to Bitcoin's larger share in digital asset ETPs compared to its position in the whole market. The study indicates that Bitcoin covers 75% of total crypto ETP net assets. In contrast, Bitcoin's stake in the entire crypto market has hovered around 50% in the past year, supported by data from CoinGecko. Meanwhile, Bitcoin has seen the most substantial gains in the cryptocurrency market, with a 104% leap between January 1 and October 31, 2023. Ether's growth, the second most significant cryptocurrency concerning market cap, was 50% for the same period, citing CoinGecko data.
Fineqia reported that the net assets of the crypto ETP reached an impressive $38 billion in October 2023, growing by 25% compared to the previous month and marking the highest figure since May 2022. Similarly, the total cryptocurrency market capital increased 17% in October, inflating from $1.15 trillion to $1.35 trillion.
Fineqia CEO, Bundeep Singh Rangar, indicated that the dynamics in the crypto ETP and overall crypto market are an early sign of the anticipated arrival of a spot Bitcoin exchange-traded fund in the U.S. He commented, "The smoke signals are out for the very likely and near imminent approval of Bitcoin Spot ETFs. The market's simply responding to this positive signaling."
This revelation comes as regulatory body, the U.S. Securities and Exchange Commission (SEC), awaits the decision on 12 spot Bitcoin ETF applications from firms like 21Shares and WisdomTree. In mid-November, the SEC postponed judgements on approvals for three more spot Bitcoin ETF applications by companies including Franklin Templeton, Hashdex, and Global X. Franklin Templeton and Hashdex, once scheduled for Nov. 17, along with Global X, set for Nov. 21, all experienced delayed decisions from the SEC until Jan. 1, 2024. The SEC requested Global X to provide a counter-argument in the next 35 days or by Dec. 22.
Published At
11/20/2023 10:27:03 AM
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