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Crypto ETP volumes increased by 91%, outperforming underlying assets

Cryptocurrency exchange-traded products (ETPs) have seen significant growth in 2023, outpacing the growth of underlying assets, according to a report by digital asset platform Fineqia.
Crypto-based ETPs issued by companies like 21Shares, Grayscale, and CoinShares saw a 91% increase in total assets under management (AUM) from January 1 to October 31, 2023, Fineqia reported.
The growth in ETPs has outpaced the growth of underlying digital assets by 30%, while cryptocurrencies have experienced relatively slower growth of around 70% over the same period.
Fineqia’s study included a total of 168 cryptocurrency ETPs currently published, based on ETP AUM data from sources such as 21Shares, Grayscale Investment, VanEck Associates, and others.
“Search includes all products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree and other issuers”A spokesperson for Fineqia told Cointelegraph:
“Data is updated on the first business day of each month, so it represents data at the end of the previous month.”said Fineqia research analyst Matteo Greco. He added that the data was collected from official sources and, where not available on issuers’ websites, data aggregators. “Starting August 2022, all data is stored in a spreadsheet and collected every month.”the analyst stated.
Fineqia attributes the difference between the rise in crypto ETPs AUM and the rise of the underlying market to Bitcoin’s higher rate (Bitcoin) within digital asset ETPs based on its share in the overall market. According to research, Bitcoin represents 75% of the total AUM of crypto ETPs. On the other hand, Bitcoin’s share in the crypto market was around 50 percent last year. CoinGecko.
At the same time, Bitcoin became among the market’s most profitable assets, with a 104% increase in the period between January 1 and October 31, 2023.ETHThe cryptocurrency, which is the second-largest cryptocurrency by market capitalization, rose 50% in the same period, according to CoinGecko data.

Bitcoin price chart from January 1 to October 31, 2023. Source: CoinGecko

Crypto ETP AUM reached $38 billion in October, up 25% from the previous month, the highest since May 2022, according to Fineqia. Total cryptocurrency market capitalization also increased by 17% in October, from 1,150 to 1,350 billion dollars.

Related: CoinShares Receives Exclusive Right to Purchase Valkyrie’s ETF Unit

According to Fineqia CEO Bundeep Singh Rangar, the dynamics of the crypto ETP market and digital asset markets in general underscore rumors about the potential arrival of a Bitcoin exchange-traded fund (ETF) in the US. He declared:

“Smoke signals are clear regarding the possible and imminent approval of Bitcoin Spot ETFs. The market is responding to this positive signal.”

The news comes as 12 Bitcoin ETF applications filed by companies such as 21Shares and WisdomTree await a decision by the US Securities and Exchange Commission (SEC). In mid-November, the SEC delayed its approval decision on three Bitcoin ETF applications from companies including Franklin Templeton, Hashdex, and Global X.
on November 15 Franklin Templeton And hashdexThe deadline, previously set as November 17, was postponed by the SEC to January 1, 2024. expected The filing, filed for November 21, was postponed as expected, and the SEC invited the company to respond within the next 35 days or by December 22.

Translation by Walter Rizzo

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