According to Cointelegraph, global cryptocurrency exchange-traded products (ETP) have experienced a significant increase in 2023, outpacing the growth of underlying assets. A report by digital asset platform Fineqia revealed that crypto-based ETPs issued by companies like 21Shares, Grayscale, and CoinShares recorded a 91% increase in total assets under management (AUM) from January 1 to October 31, 2023. This surge outperformed the growth of underlying digital assets by 30%, as cryptocurrencies had comparatively slower growth of around 70% over the same period.
Fineqia's study included a total of 168 crypto ETPs, based on the ETP AUM data from sources like 21Shares, Grayscale Investment, VanEck Associates, and others. The difference between the crypto ETP AUM surge and the surge of the crypto market is attributed to Bitcoin's (BTC) larger proportion within digital asset ETPs compared with its share in the overall market. According to the study, Bitcoin accounts for 75% of the total crypto ETP AUM, while its share of the crypto market has been around 50% over the past year.
In October, the crypto ETP AUM reached $38 billion, a 25% month-over-month increase and its highest figure since May 2022. The total cryptocurrency market capitalization also rose 17% in October, surging from $1.15 trillion to $1.35 trillion. Fineqia CEO Bundeep Singh Rangar believes that the dynamics in the crypto ETP market and overall crypto markets signal excitement around a potentially coming spot Bitcoin exchange-traded fund in the United States. The news comes as 12 spot Bitcoin ETF applications from firms like 21Shares and WisdomTree await a decision by the U.S. Securities and Exchange Commission (SEC).
