Digital Asset Exchange Traded Products Surge 91% In AUM, Bitcoin Dominates
So far this year, exchange traded products (ETPs) with digital assets as underlying collateral, recorded a 91% growth in total assets under management (AuM).
That’s according to Fineqia International, which reported $38 billion in ETPs AuM — a 25% increase from the prior month.
That number also marked the highest level in 2023 since May 2022. The market value of crypto assets in October expanded 17% to around $1.35 trillion from $1.15 trillion. It also led to the highest market cap since June 2022.
Bitcoin (CRYPTO: BTC) accounts for 75% of ETPs AUM, which is only half of the digital asset market.
Fineqia included all currently issued 168 crypto ETPs based on the ETP AUM data from sources like 21Shares, Grayscale Investment, CoinShares, VanEck Associates, ETC Group, WisdomTree and other issuers.
ETPs include both ETFs and Exchange-Traded Notes (ETNs).
- The AuM of ETPs holding Bitcoin in October increased by 29.6%, to $28.1 billion
- Year-to-date AuM expanded by 107%
- BTC prices reported a 28% surge in October with past-year gains of 127%.
- On the other side, Ethereum (CRYPTO: ETH) denominated ETPs AuM were up 7.8% to $7.2 billion in October; 46% on a year-to-date basis.
- ETH prices increased 8.2% in October, taking past year gains to 74%.
- For AuM on a year-to-date basis, ETPs with a diversified basket of cryptocurrencies increased 68% while those representing individual altcoins reflected a 38% increase. W
- ith the recent Solana rally, ETPs holding Solana expanded 172% in AuM in October.
The U.S. SEC has 12 pending applications for Spot Bitcoin ETF which have a likelihood of approval in January 2024. Investors in the hope of such approvals have raised their asset allocations in ETP and ETNs.
“The smoke signals are out for the very likely and a near imminent approval of Bitcoin Spot ETFs. The market’s simply responding to this positive signaling,” Fineqia CEO Bundeep Singh Rangar commented.
Produced in association with Benzinga
