Crypto ETFs valued at $4.5 billion in total assets: Report

While much has been made of the long queue of crypto ETFs awaiting approval, quite a few already exist, and their total assets have reached $4.52 billion, according to data from a recent research. Exchange Traded Products (ETPs), more broadly, of which ETFs are a subset, have a longstanding presence in the market as will be detailed below. 

Also Read: SEC Chair says staffs’ recommendation will be vital for Bitcoin Spot ETF approvals after Grayscale ruling.

Cryptocurrency ETPs with a focus on ETFs

Cryptocurrency Exchange-Traded Products (ETPs), have become a popular subject amid the US Securities and Exchange Commission’s (SEC) streak of delays on Bitcoin Spot Exchange-Traded Fund (ETF) applications. A recent Bloomberg study on cryptocurrency data aggregator CoinGecko has deciphered the subject, with the top 25 crypto ETP’s valued at XYZ and crypto ETFs accounting for a combined $4.52 billion. 

Crypto ETPs are financial tools trading on exchanges, offering investors exposure to investment opportunities – in this case the cryptocurrency market. They are crucial in linking traditional finance (TradFi) to the crypto scene. An ETF is a type of ETP but with regulatory specifics. Other ETPs include Exchange-Traded Notes (ETNs) and Exchange-Traded Commodities or Cryptos (ETCs).

ETFs stand out for “offering a more direct exposure to crypto assets and diversification where relevant,” with Hashdex Nasdaq Crypto Index FI (HASH11) and ProShares Bitcoin Strategy ETF (BITO) standing as clear examples.   

Unlike in the US, where ETFs are common, Europe offers ETPs, ETNs, and ETCs because of fund regulations. ETNs define debt securities, tracking cryptocurrency assets without direct ownership. In this regard, COINXBT, the XBT Provider Bitcoin Tracker One, and ABTC, the 21Shares’ Bitcoin ETP, pass as examples.

Conversely, cryptocurrency ETCs are physically backed, with the provider holding the asset itself. Examples include BTCE and BITC, the ETC Group Physical Bitcoin, and CoinShares Physical Bitcoin.

Top crypto ETFs and ETPs by assets

The report ranks COINXBT as the world’s top crypto ETP with up to $4.43 billion in asset size and 71.6% larger than the next largest, COINETH, the Ethereum tracker, with up to $2.58 billion in asset size.

On the other hand, HASH11 ranks as the top crypto ETF with up to $1.07 billion in asset size. Based in Brazil, the Hashdex Nasdaq Crypto Index FI “Is the biggest offering to track crypto more broadly, across both ETFs and ETPs.”

Grayscale Bitcoin Trust (GBTC) was left out because it is traded over the counter (OTC). Nevertheless, out of the 25, nine are crypto ETFs with a combined $4.52 billion in total assets. Five are crypto ETNs, accounting for $8.09 billion in total assets, while eight are ETCs with up to $1.68 billion in total assets. There is one investment trust and two closed-end funds (CEFs), completing the list of 25.

List of top 25 crypto ETFs and ETPs as of September 11

Note the multiple appearances of Cathie Wood’s 21Shares at positions 14, 15, 17, and 25 in the race for largest ETPs. The #15, 21Shares Binance BNB ETP (ABNB), is the only one in the top 25 ETPs focusing on Binance Coin (BNB). The combined total assets for 21Shares is $767.92 million.

Also Read: ARK Invest and 21Shares submit two joint Ethereum futures ETF applications after SEC remission.

Bringing crypto to TradFi

Based on the report, Bitcoin and Ethereum are popular among the top 25 crypto ETPs. Specifically, twelve focus exclusively on BTC, while seven focus on Ethereum. This is relative to the “three broader crypto-themed offerings and two blockchain-themed ETFs made it into the top 25.”

The data points to the amount of confidence investors in the TradFi space have in BTC and ETH as alternative investments as opposed to other altcoins in the crypto sector.