The Explosive Growth of Crypto ETPs
The world of cryptocurrency exchange-traded products, or ETPs, has recently become a rollercoaster ride no one quite expected. According to a thrilling report by Fineqia, the growth seen within crypto ETPs in 2023 has been nothing short of spectacular—91% increase in total assets under management (AUM) from January 1st to October 31st to be precise! To put this in perspective, that’s a leap that would give Superman a run for his money, as this figure has outpaced the hastener growth of the underlying digital assets, which only managed to clock in at around 70%!
Investigating the Numbers
Fineqia’s study not only covered a whopping 168 crypto ETPs but also drew data from several major players in the market, including 21Shares, Grayscale, and VanEck Associates. This hefty collection of assets brings Bitcoin (BTC) to the forefront, as it constitutes a solid 75% of total crypto ETP AUM. Meanwhile, we’re curious—where’s the love for Ethereum (ETH)? The second-largest crypto only accounts for a slinky 10% of this category. Who’s keeping track here?
Bitcoin and the ETP Phenomenon
The surge in ETP assets has been strongly connected to Bitcoin’s meteoric rise, surging an impressive 104% this year, while ETH has only managed a still-than-favorable 50% increase. To illustrate this weird yet riveting disparity, if Bitcoin were throwing a party, it would have balloons, a DJ, and dance-offs, while Ethereum would be gnashing its teeth in the corner nursing its drink. The crypto market is essentially a party, and Bitcoin is the life of it!
Highlights from the Market in October
Talking numbers, crypto ETP AUM touched a whopping $38 billion just in October alone! This 25% increase month-over-month marks the highest it’s been since May 2022. For context, the total cryptocurrency market capitalization experienced a more modest 17% surge during October, jumping from $1.15 trillion to $1.35 trillion. Who’s dropping the champagne corks at the crypto parties? Fineqia’s CEO, Bundeep Singh Rangar, certainly is, pointing out that these dynamics signal excitement—hinting at the possible and oh-so-desired approval of U.S. spot Bitcoin ETFs that have everyone buzzing.
The Pending Decisions and Market Speculations
As we ride this wave of cryptocurrency enthusiasm, it’s important to remember that there are currently 12 spot Bitcoin ETF applications dangling in limbo, waiting for some lovin’ from the U.S. Securities and Exchange Commission (SEC). With recent delays on decisions for three separate applications, it feels a bit like waiting for someone to text back after a date—will they or won’t they? Only time will tell, but the anticipation has the market on the edge of its seat. Will it be a happy-ever-after or just a friend zone?
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