- According to Fineqia International’s research, there were 53 more encrypted ETPs in December 2022 than there were in January 2022 (from 109 to 162). But its managed assets decreased from $58.5 billion to $20 billion.
- The number of ETPs decreased from 163 to 162 as a result of the removal of one ETP that used the FTX token as its underlying asset.
According to Fineqia International’s analysis of Exchange Traded Products (ETPs) with cryptocurrencies as their underlying assets, there are now 162 ETPs, up from 109 in 2022, despite a 66% decline in their Assets Under Management (AUMs).
The overall AUM decreased by a third to $20 billion from $58.5 billion in 2022, according to the analysis.
The internal research team at Fineqia gathered all ETFs and ETPs AUM from publically accessible sources such 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS.
ETPs launched in bear markets grew significantly in succeeding bull markets. For instance, Grayscale’s Litecoin Trust (LTCN), which was introduced in 2018, increased its AUM by almost 220 times.
In contrast, ETPs that were introduced around the time that Bitcoin (BTC) reached its record high of over $69,000 in November 2021, such as the ProShares Bitcoin Strategy ETF, which debuted on October 18, 2021, had a 54% decline in market capitalization from $1.2 billion to roughly $549 million.
Between January and December 2022, the price of Ethereum (ETH) fell by 68% and that of Bitcoin by 65%. Fineqia’s CEO Bundeep Singh Rangar, said:
“The fact that an average of one new ETP was issued each week, despite the bear market in 2022, can be seen as an indication of continued investor appetite for this asset class. Specific events, such as the bankruptcy of FTX, contributed to a fall in crypto prices and resultant AUMs.”
The AUM ETPs holding BTC decreased by 3% in December, from $14 billion to $13.5 billion. The AUM of ETPs trading in ETH dropped from $5.3 billion to $5 billion, a 7.5% decline. ETPs that represent alternative coins fell by 18%, while those that include a variety of cryptocurrencies fell by 8%.
The number of ETPs decreased by one, from 163 to 162, because one ETP that used the FTT as its underlying asset was taken off of trading. FTT is the native token of the exchange that no longer exists FTX. Its demise has had ramifications for the crypto market and the companies in the industry.
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