Assets In Exchange-Traded Products Backed By Crypto Surge 91% In 2023: Report
Portfolio Pulse from Khyathi Dalal
Exchange traded products (ETPs) backed by digital assets have seen a 91% increase in assets under management (AuM) this year, reaching $38 billion, the highest since May 2022. Bitcoin ETPs account for 75% of the AuM, with a 29.6% increase in October to $28.1 billion. Ethereum ETPs also grew by 7.8% to $7.2 billion. The market is responding to potential approval of Bitcoin Spot ETFs by the U.S. SEC, with 12 applications pending for January 2024.
November 20, 2023 | 9:10 pm
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POSITIVE IMPACT
Bitcoin ETPs, which make up 75% of the total crypto ETPs AuM, saw a 29.6% increase in October. The anticipation of a Bitcoin Spot ETF approval by the SEC could further drive interest and prices.
The significant growth in Bitcoin ETPs AuM and the market's positive response to the potential approval of Bitcoin Spot ETFs suggest a bullish outlook for Bitcoin in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Ethereum denominated ETPs saw a 7.8% increase in AuM to $7.2 billion in October, with a 46% increase year-to-date. Positive regulatory developments could also impact Ethereum positively.
The growth in Ethereum ETPs AuM and the overall positive sentiment in the crypto ETP market, partly due to regulatory developments, could lead to a short-term price increase for Ethereum.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70