US-Approved Spot Bitcoin ETFs Could Surpass Entire $50 Billion Crypto ETP Market: BitMEX
The global market for cryptocurrency exchange-traded products (ETPs) has reached a significant milestone, currently comprising approximately 150 products with a total value of $50.3 billion in assets under management, as reported by BitMEX research.
According to the research, the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States may significantly impact the crypto ETF market. This substantial market includes both spot and futures funds, primarily tracking the performance of leading cryptocurrencies such as Bitcoin and Ethereum.
Complete List of Cryptocurrency Related ETPs
In anticipation of the SEC approving the spot Bitcoin ETFs, we present what we believe to be a comprehensive list of all the existing crypto related exchange traded products
We have found 150 products with $50.3bn of assets, as at 22… pic.twitter.com/cFUxtuvXgd
— BitMEX Research (@BitMEXResearch) December 25, 2023
The dominance of Bitcoin within the crypto ETP space is evident, with the total value of Bitcoin ETFs alone standing at an impressive $35.4 billion. Notable products contributing to this figure include the Grayscale Bitcoin Trust (GBTC), with assets totaling $27,077.4 million, and the Proshares Bitcoin Strat ETF (BITO), with $1,645.3 million in assets.
Beyond Bitcoin, the report provides insights into the diverse landscape of cryptocurrency ETPs. Ethereum, for instance, contributes significantly with a subtotal of $8,824.5 million, prominently featuring the Grayscale Ethereum Trust (ETHE) with $6,861.8 million in assets.
The report extends its coverage to emerging cryptocurrencies like Solana, reflecting a rising star in the crypto space. Solana’s representation in the market includes a subtotal of $682.4 million, encompassing products such as the Grayscale Solana Trust (GSOL) and 21Shares Solana Staking ETP.
Furthermore, the report explores multicoin products, emphasizing a subtotal of $720.0 million for Bitwise Multicoin and $381.6 million for Grayscale Digital Large Cap, among others.
In addition to individual cryptocurrencies, the crypto ETP market also includes a range of products tied to blockchain technology, the metaverse, and various thematic ETFs. The Equity Products Subtotal is reported at $2,648.7 million, featuring notable entries like Amplify Transformational Data Sharing (BLOK) and Valkyrie Bitcoin Miners ETF (WGMI).
Bitwise and Van Eck Offer Divergent Predictions on Success of Potential Spot Bitcoin ETFs as Anticipation Builds
According to the BitMEX research, it is noted that the anticipated approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) signals a potential shift in the cryptocurrency market. This development could potentially impact existing exchange-traded products and attract new investors into the crypto space.
As the anticipation for the approval of spot Bitcoin ETFs in the United States continues to build, crypto investment firms Bitwise and Van Eck have offered contrasting predictions about the potential success of these financial products.
On December 14, the prominent crypto investment fund Bitwise predicted that spot Bitcoin ETFs would emerge as the most successful ETF product ever launched. The firm expects ETFs to surpass $72 billion in assets under management within the next five years, projecting that they will more than double the current market size.
On the other hand, the global fund manager, Van Eck, adopted a more conservative stance, estimating that approximately $2.4 billion would flow into spot Bitcoin products during the first quarter of 2024.
Despite being significantly lower than Bitwise’s optimistic projection, this figure still reflects a substantial influx of capital into the potential spot Bitcoin ETFs. While the U.S. has not yet approved a spot Bitcoin ETF, other countries such as Canada, Australia, and Germany already allow investors to buy shares in such ETFs.
A December 21 report from ETF research firm ETFGI disclosed that crypto ETFs listed worldwide attracted year-to-date net inflows of $1.6 billion, with a significant portion—$1.31 billion—added in November alone. Notably, this cumulative investment nearly doubles the $750 million net inflows into crypto exchange-traded products (ETPs) in 2022.
Of the 150 crypto funds, the top 20 ETFs garnered the lion’s share of investment, totaling $1.3 billion throughout 2023. Particularly, the ProShares Bitcoin Strategy ETF (BITO), launched during a crypto bull market in October 2021, stood out as the frontrunner in individual inflows, securing an additional $278.7 million in 2023.
