How Did Bitcoin Etp Volumes Perform This Year?

According to the public crypto company Fineqia, Bitcoin constituted 75% of crypto ETPs (Exchange-Traded Products) between January and October 2023.

According to a report prepared by the digital asset platform Fineqia, Exchange-Traded Products (ETPs) traded in the crypto market showed a significant increase in 2023, surpassing underlying assets. The report revealed that crypto-based ETPs issued by companies such as 21Shares, Grayscale, and CoinShares experienced a 91% increase in total assets under management (AUM) between January 1 and October 31.

According to Fineqia's research, crypto ETPs showed a 30% higher increase than underlying digital assets. The study includes ETP AUM data obtained from 21Shares, Grayscale Investment, VanEck Associates, and other sources, covering a total of 168 crypto ETPs.

A spokesperson for Fineqia stated, "The research includes all products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree, and other issuers."

Fineqia analyst Matteo Greco mentioned, "The data is updated on the first business day of each month. Therefore, the data represents the end of the previous month." Greco added that data is collected from data collectors in cases where it is not available on official sources and issuer websites. He stated, "All data is stored in a single spreadsheet and has been backed up monthly since August 2022."

Fineqia attributed the larger share of Bitcoin in digital asset ETPs compared to its overall market share to Bitcoin constituting 75% of crypto ETPs. According to the research, based on CoinGecko data, Bitcoin's share in the crypto market was around 50% last year.

Additionally, the report noted that Bitcoin showed a significant increase of 104% between January 1 and October 31, making it one of the most profitable assets in the crypto market. CoinGecko data indicated that during the same period, the second-largest cryptocurrency by market capitalization, Ether (ETH), increased by 50%.

According to Fineqia, in October, crypto ETPs reached $38 billion, showing a 25% increase compared to the previous month and reaching their highest level since May 2022. The total market capitalization of the crypto market also increased by 17% in October, rising from $1.15 trillion to $1.35 trillion.

Fineqia CEO Bundeep Singh Rangar believes that these movements in the crypto ETP market and overall crypto markets are a sign of the excitement created by the expected approval of a spot Bitcoin exchange-traded fund (ETF) in the United States:

"Signals are coming that Bitcoin Spot ETFs will likely be approved soon. The market is responding only to this positive signal."

The news comes at a time when 12 spot Bitcoin ETF applications from companies such as 21Shares and WisdomTree are awaiting a decision from the U.S. Securities and Exchange Commission (SEC). In mid-November, the SEC delayed the approval decision for spot Bitcoin ETF applications from companies like Franklin Templeton, Hashdex, and Global X. The previously set final approval date of November 17 for Franklin Templeton and Hashdex applications was extended to January 1, 2024. The Global X application, which had a final approval date set for November 21, was also delayed by the SEC, giving the company until December 22 to respond.