The Global Market for Crypto ETPs Reaches $50.3 Billion
The market for cryptocurrency exchange-traded products (ETPs) has hit a significant milestone, with around 150 products valued at $50.3 billion in assets under management, according to research by BitMEX. This market includes both spot and futures funds that primarily track the performance of leading cryptocurrencies like Bitcoin and Ethereum.
Dominance of Bitcoin in the Crypto ETP Space
Bitcoin dominates the crypto ETP space, with Bitcoin ETFs alone valued at $35.4 billion. Notable contributors to this figure are the Grayscale Bitcoin Trust (GBTC) and the Proshares Bitcoin Strat ETF (BITO).
Ethereum and Emerging Cryptocurrencies in the ETP Market
Aside from Bitcoin, Ethereum also plays a significant role in the crypto ETP market, with a total value of $8,824.5 million. The Grayscale Ethereum Trust (ETHE) is a prominent contributor to this figure. Additionally, emerging cryptocurrencies like Solana are gaining traction, with a total value of $682.4 million in the market.
Multicoin Products and Other Crypto-Related ETPs
The report highlights multicoin products such as Bitwise Multicoin and Grayscale Digital Large Cap, which have values of $720.0 million and $381.6 million respectively. The crypto ETP market also includes products tied to blockchain technology, the metaverse, and various thematic ETFs.
Bitwise and Van Eck Predictions on Spot Bitcoin ETFs
As anticipation builds for the approval of spot Bitcoin ETFs in the US, investment firms Bitwise and Van Eck offer differing predictions on their success. Bitwise expects spot Bitcoin ETFs to become the most successful ETF product ever launched, surpassing $72 billion in assets under management within five years. On the other hand, Van Eck predicts approximately $2.4 billion to flow into spot Bitcoin products in Q1 2024.
Hot Take: US-Approved Spot Bitcoin ETFs Could Surpass Entire $50 Billion Crypto ETP Market
The potential approval of spot Bitcoin ETFs in the US could have a significant impact on the crypto ETP market, attracting new investors and potentially surpassing the current $50.3 billion market value. While other countries already allow investors to buy shares in spot Bitcoin ETFs, the US has yet to approve them. However, the growing interest in crypto ETFs is evident, with substantial inflows recorded in 2023 and a positive outlook for future growth.
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