Exchange-traded products (ETPs) for cryptocurrencies have grown significantly globally in 2023, surpassing the growth of underlying assets. 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 a report by digital asset platform Fineqia. Over the same period, cryptocurrencies grew at a slower rate of about 70%, thus this rise outpaced the growth of underlying digital assets by 30%.
Based on ETP AUM data from sources like as VanEck Associates, Grayscale Investment, and 21Shares, Fineqia’s study covered 168 crypto ETPs in total. The distinction between the rise in the AUM of cryptocurrency ETPs and the rise in the cryptocurrency market is due to the fact that Bitcoin (BTC) has a higher percentage in digital asset ETPs than it does in the market as a whole. Bitcoin has been about 50% of the crypto market over the past year, but the study claims that it makes up 75% of the entire crypto ETP AUM.
October saw a 25% month-over-month gain in the cryptocurrency ETP AUM to $38 billion, which was a record high since May 2022. In October, the market capitalization of all cryptocurrencies increased by 17%, rising from $1.15 trillion to $1.35 trillion. According to Bundeep Singh Rangar, CEO of Fineqia, the dynamics in the cryptocurrency exchange-traded fund (ETP) market and the broader cryptocurrency markets indicate enthusiasm about the possibility of a spot Bitcoin ETF in the US. The U.S. Securities and Exchange Commission (SEC) is now reviewing 12 spot Bitcoin ETF applications from companies such as WisdomTree and 21Shares, and a decision is expected soon.
