Understanding the Differences between ETFs and ETPs
CoinGecko, a leading data aggregator in the crypto industry, has conducted an analysis of the best ETPs and ETFs. These financial products allow investors in traditional exchanges to gain exposure to the performance of cryptocurrencies without the need for a wallet or understanding the market. However, unlike SPOT ETFs, which are highly desired by bitcoiners, current ETFs and ETPs do not involve buying the underlying asset.
If applications from major players like BlackRock, VanEck, and Wisdomtree are approved, it could revolutionize the investment world for crypto and create a surge in demand.
The Main Differences between ETFs and ETPs
ETPs (Exchange Traded Products) are exchange-traded financial products that provide investors with exposure to certain sectors, including crypto. ETPs include exchange-traded products (ETFs), exchange-traded funds (ETNs), and exchange-traded commodities (ETCs). ETFs allow investors to allocate money into a fund that replicates the performance of the underlying asset. ETNs track certain products as debt securities, while ETCs represent physically backed commodities. ETNs cover all remaining investment sectors.
The Most Popular ETF and ETP in the Crypto World
CoinGecko’s analysis reveals that the most traded ETP in the crypto world is ETN Bitcoin Tracker One (COINXBT) with a value of $4.43 billion. The second largest investment product is ETN Ethereum Tracker One (COINETH) valued at $2.58 billion. Among ETFs, Hashdex Nasdaq Crypto Index FI (HASH11) is well-known with assets of $1.07 billion.
Overall, there are only 9 ETFs among the top 25 ETPs, with a total value of $4.52 billion. ETNs dominate with the top 5 valued at $8.09 billion. ETCs, which invest in 8 different cryptocurrencies, are worth $1.68 billion. Bitcoin and Ethereum are the most popular assets among the top 25 crypto-themed ETPs.
Hot Take: The Growing Interest in Altcoins
While Bitcoin and Ethereum remain popular, traditional stock exchanges are increasingly interested in altcoins. The major providers of investment products on Bitcoin and Ethereum are XBT Provider, Hashdex, and Purpose Investment. Canada has the highest number of listed ETPs, followed by Sweden, the United States, and Switzerland.
Overall, the approval of ETF applications from major players could revolutionize the crypto investment world and create a surge in demand.
By
By
By
By
By