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Crypto ETPs Nearly Doubled in 2023

20 Nov, 2023 Crypto News

Crypto ETPs Nearly Doubled in 2023

The growth of global cryptocurrency exchange-traded products (ETPs) has reportedly increased significantly in 2023, surpassing the growth of underlying assets, as per a report by digital asset platform Fineqia.

Total assets under management (AUM) for crypto-based ETPs issued by firms like 21Shares, Grayscale, and CoinShares increased by 91% between January 1 and October 31, 2023, according to the Fineqia report.

Cryptocurrencies grew at a slower rate—roughly 70% over the same period—and the surge in crypto ETPs has outpaced the growth of underlying digital assets by 30%.

Fineqia's analysis, which was based on ETP AUM data from sources such as VanEck Associates, Grayscale Investment, and 21Shares, included all 168 crypto ETPs that are currently in circulation.

A Fineqia representative told Cointelegraph, "The research includes all the products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree and other issuers."

According to Matteo Greco, a research analyst at Fineqia, "the data is updated every first business day of the month; hence, they express the data at the end of the previous month."

He continued by saying that the information is gathered from official sources and data aggregators when it isn't available on the websites of the issuers.

The analyst said, "Every month starting in August 2022, all the data is stacked into a spreadsheet."

Bitcoin's higher proportion within digital asset ETPs compared to its share in the overall market is Fineqia's explanation for the discrepancy between the surge in crypto ETP AUM and the surge in the crypto market.

As per the study, 75% of the total crypto ETP AUM is attributed to Bitcoin. However, according to CoinGecko data, Bitcoin has held a 50% market share in the cryptocurrency market for the past year.

Simultaneously, Bitcoin has experienced significant growth in the cryptocurrency market, rising 104% between January 1 and October 31, 2023.

Data from CoinGecko shows that during the same period, ether, the second-largest cryptocurrency by market capitalization, increased by 50%.

The dynamics in the cryptocurrency exchange-traded fund (ETF) market and the broader crypto markets, according to Bundeep Singh Rangar, CEO of Fineqia, indicate the excitement surrounding a potential spot Bitcoin ETF in the US. He says:

“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.”

The U.S. Securities and Exchange Commission (SEC) is currently reviewing 12 spot Bitcoin ETF applications from companies such as WisdomTree and 21Shares, and a decision is expected soon.

Sources:

https://cointelegraph.com/news/crypto-etp-surge-91-outpace-market

https://www.coingecko.com/en/global-charts

https://coinmarketcap.com/currencies/bitcoin/

https://coinmarketcap.com/currencies/ethereum/

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