Global cryptocurrency exchange-traded products (ETPs) grew significantly in 2023, reportedly outpacing the growth of underlying assets, according to a report by digital asset platform Fineqia.
According to the Fineqia report, total assets under management (AUM) of cryptocurrency-based ETPs issued by companies such as 21Shares, Grayscale and CoinShares increased by 91% from January 1 to October 31, 2023.
The surge in cryptocurrency ETPs has exceeded the growth of the underlying digital assets by 30%, while the growth of cryptocurrencies during the same period has been relatively slower at about 70%.
Fineqia’s research includes a total of 168 cryptocurrency ETPs currently issued, based on ETP AUM data from 21Shares, Grayscale Investment, VanEck Associates and other sources.
“This study includes all products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree and other issuers,” a Fineqia spokesperson told Cointelegraph.
“The data is updated on the first working day of each month, so they represent the data at the end of the previous month,” said Matteo Greco, a research analyst at Fineqia. He added that the data is collected from official sources and if the issuer There are no data provided by data aggregators on the website. “All data is stored in spreadsheets and stacked monthly starting in August 2022,” the analyst noted.
Fineqia attributes the difference between the surge in cryptocurrency ETP AUM and the surge in the cryptocurrency market to the fact that Bitcoin (BTC) accounts for a higher proportion of digital asset ETPs than its share of the overall market. Research shows that Bitcoin accounts for 75% of the total assets under management (AUM) of cryptocurrency ETPs. On the other hand, Bitcoin’s share of the crypto market has been around 50% in the past year. according to Data from CoinGecko.
Meanwhile, Bitcoin has been one of the cryptocurrency market’s biggest gainers, surging 104% between January 1 and October 31, 2023. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, surged 104%, according to CoinGecko data, after growing 50% over the same period.
According to Fineqia statistics, the asset management scale of cryptocurrency ETP reached US$38 billion in October, a quarterly increase of 25%, setting the highest level since May 2022. The total cryptocurrency market capitalization also rose by 17% in October, soaring from $1.15 trillion to $1.35 trillion.
related: CoinShares acquires purchase rights to units of Valkyrie Crypto ETF
Fineqia CEO Bundeep Singh Rangar said that dynamics in the cryptocurrency ETP market and the overall cryptocurrency market indicate that people are excited about the possible imminent launch of a spot Bitcoin exchange-traded fund in the United States. He said:
“The smoke signals that a Bitcoin spot ETF is likely and imminent in approval have disappeared. The market is simply reacting to this positive signal.”
The news comes as 12 spot Bitcoin ETF applications from companies including 21Shares and WisdomTree await decisions from the U.S. Securities and Exchange Commission (SEC). In mid-November, the SEC delayed approval decisions on three more spot Bitcoin ETF applications from companies including Franklin Templeton, Hashdex and Global X.
November 15, franklin templeton and Hash index — Its deadline was originally scheduled for Nov. 17 — but the SEC pushed back its deadline to Jan. 1, 2024. Global X’s deadline was originally scheduled for November 21st, also face As expected, the SEC has given the company until December 22 to file a rebuttal within the next 35 days.
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