The global market for cryptocurrency exchange-traded products (ETPs) has witnessed explosive growth in recent years, surpassing $50 billion in assets under management. These products allow investors to gain exposure to cryptocurrencies like Bitcoin and Ethereum through traditional investment vehicles like ETFs and ETNs. The U.S. approval of spot Bitcoin ETFs could further accelerate this trend and push the total ETP market size past $72 billion within 5 years.
Total Number of Crypto ETPs
Approximately 150 cryptocurrency ETPs currently exist worldwide, tracking a variety of digital assets and blockchain-related themes. This includes over 130 Bitcoin ETPs and at least 38 Ethereum products
Total Assets Under Management
The total assets under management for these 150+ ETPs recently surpassed $50 billion, demonstrating explosive growth in investor interest. Bitcoin ETFs dominate with over $35 billion in assets, led by the Grayscale Bitcoin Trust (GBTC) at $27 billion and the ProShares Bitcoin Strategy ETF (BITO) at $1.6 billion. Ethereum ETPs hold $8.8 billion while multiasset and thematic blockchain/metaverse ETPs total over $6 billion.
Potential Impact of U.S. Spot Bitcoin ETF Approval
While countries like Canada, Australia and Germany currently offer spot Bitcoin ETFs, the U.S. SEC has yet to approve similar products. VanEck estimates about $2.4 billion could flow into spot Bitcoin ETFs in early 2024. But Bitwise predicts approvals could push total crypto ETP assets to over $72 billion within 5 years, potentially doubling the current market size.
2022 Crypto ETP Investment Trends
Year-to-date net inflows into cryptocurrency ETPs have already reached $1.6 billion, including a record $1.31 billion in November alone. The top 20 crypto ETPs accounted for $1.3 billion of investment in 2023, led by BITO with $278.7 million in inflows.
Global Availability of Spot Bitcoin ETFs
While the U.S. SEC continues to refrain from approving spot Bitcoin ETFs, other countries like Canada, Australia and Germany currently offer such products to their investors, highlighting an opportunity for the SEC to catch up with global trends.