The industry of crypto ETPs is booming: assets under management (AUM) across all ETPs shot up 95% since December to $35.96 billion, according to a report released today.
The Digital Asset Management Review report, by research firm CryptoCompare, says that the majority of AUM for ETPs is in the Grayscale Bitcoin Trust (GBTC)—which increased its AUM by 93.7% in the past 30 days to $22.6 billion.
In January #ETPs experienced record investment ($35.96bn in AUM, up 95%) as well as trading volumes ($1.51bn/day, up 191%).
ETPs (exchange traded products) track the value of an underlying asset—just like stocks. Bitcoin or crypto ETPs allow people or companies to invest without actually holding the asset themselves.
As the prices of Bitcoin and altcoinsaltcoins have increased, more people have become interested in investing in the asset—especially institutional investors (a company that invests on behalf of others.)
They are useful for those who don’t want to worry about holding Bitcoin or Ethereum but still would like to invest.
CoinShares, an investment firm specializing in digital assets, is launching a Bitcoin exchange-traded product (ETP) on the SIX Swiss Exchange, according to reporting today from Bloomberg.
Koimanu, an institutional custody firm, will be the custodian of the ETP, which costs investors 0.98% of their holdings in fees. (But they don't have to worry about holding cryptocurrency themselves.)
massive congrats to our team @CoinSharesCo - starting 2021 off with a 🧨 bang 🧨
our newest exchange traded pr...
CryptoCompare’s report says that these regulated products are becoming more available than previously.
“These products make it easier for investors because they can be traded on traditional stock exchanges, with the complexities of custody and storage abstracted away from the end user,” the report notes.
Crypto ETP volumes almost tripled this month, CryptoCompare notes, to $837 million a day. Again, the GBTC is the biggest player, representing most—64%—of this trading volume.
The report adds that AUM in Grayscale’s Ethereum Trust (ETHE) was up 69.4% to $3.47 billion.
The 3iQ Listed Trust Product (QBTC) is the best performing Bitcoin product by market price over the last 30 days—increasing 91.3%.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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