Spot Bitcoin ETFs poised to revolutionize the landscape of the crypto ETP market, which presently consists of 150 offerings.
BitMEX Research has made an interesting discovery that suggests the cryptocurrency exchange-traded product (ETP) market is on the verge of a major transformation. Currently, there are approximately 150 ETPs in the market, with a combined value of $50.3 billion. However, the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States could potentially surpass the current valuation of the entire crypto-related ETF market.
At present, the global market for crypto ETPs is dominated by products that track the performance of major cryptocurrencies such as Bitcoin and Ethereum. The largest ETP in this category is Grayscale’s Bitcoin Trust, which is in the process of converting into a spot ETF product.
In anticipation of the Securities and Exchange Commission (SEC) approving spot Bitcoin ETFs, BitMEX Research has compiled a comprehensive list of all existing crypto-related exchange-traded products. They have identified 150 products with a total asset value of $50.3 billion, as of December 22, 2023.
The potential impact of spot Bitcoin ETFs has garnered significant attention in the crypto investment sphere. Analysts from Bitwise predict that these ETFs could accumulate up to $72 billion in assets under management within the next five years, effectively doubling the current market size. On the other hand, Van Eck, a global fund manager, presents a more conservative estimate, suggesting that around $2.4 billion could flow into these products in the first quarter of 2024.
While the U.S. has yet to approve a spot Bitcoin ETF, other countries such as Canada, Australia, and Germany already offer investors the opportunity to invest in these products. The growing institutional interest in crypto investment is evident from the $1.6 billion net inflows into crypto ETFs worldwide so far this year, with a significant surge in November 2023.
Among the 150 crypto funds, the top 20 ETFs have attracted the most investment, with $1.3 billion flowing into them in 2023. The ProShares Bitcoin Strategy ETF (BITO), which launched during a crypto bull market in October 2021, experienced the largest individual inflows, adding $278.7 million in 2023.
BitMEX Research has compiled this comprehensive list of existing crypto-related exchange-traded products in preparation for the anticipated SEC approval of spot Bitcoin ETFs. They acknowledge the possibility of minor inaccuracies and welcome any corrections to ensure the data’s precision.