Why Demand for Crypto ETPs Keeps Rising Despite Market Downturn

2022-10-18 17:00

Exchange-traded products (ETPs) based on crypto have continued to grow in number, despite the downturn in the underlying markets.

Roughly half of the more than 180 crypto ETPs currently available were launched after Bitcoin began its significant depreciation over the past 11 months, since its peak last Nov. 

According to a recent note from Morgan Stanley, this indicates that investment firms remain confident that cryptocurrencies, as well as blockchain technology, will eventually come to the fore, in spite of the struggles the market has experienced this year.

A report from KPMG detailed a similar phenomenon taking place with cryptocurrency companies.

What’s the Appeal of Crypto ETPs?

Crypto-based ETPs have proven popular because they provide exposure to the volatile digital assets, without investors having to concern themselves with other complications surrounding the technology.

These range from having to understand the implications behind personally managing a digital wallet, to keeping their crypto secure against hacks and fraudulent schemes.

Digital asset investment products have experienced inflows amounting to a total of $481 million, year-to-date, according to the latest report from CoinShares.

While data from Morgan Stanley asserts that 95% of the 180 crypto funds available are devoted to the top two cryptocurrencies, Bitcoin and Ethereum, other data offers a more nuanced take.

According to one expert, there has been an increasing amount of asset allocation to funds that combine some of the largest cryptocurrencies by market cap, in addition to just Bitcoin and Ethereum.

CoinShares data also revealed a growing share of inflows directed towards products based on altcoins such as Solana, Cardano and Ripple’s XRP.

Meltdown Sees Market 70% Fall

Yet, even as the availability of these crypto products seems to expand, the total value of the market has shrunk some 70% to $24 billion over the past year. This has been reflected in the prices of some of the most prominent products based on Bitcoin.

Grayscale Bitcoin Trust, the largest Bitcoin fund in the world, saw its total assets under management drop from 34% from $30 million last year to $12.2 billion.

Meanwhile, ProShares Bitcoin Strategy ETF, one of the few crypto ETPs offered in the United States, as it tracks Bitcoin futures rather than spot, also saw its assets under management (AuM) dwindle down to just $600 million, as of the end of Sept., after drawing over $1 billion during its debut last year.

The post Why Demand for Crypto ETPs Keeps Rising Despite Market Downturn appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

downturn despite etps crypto market rising demand

downturn despite → Результатов: 97


Фото:

Central Bank Of Sudan Urges Citizens To Steer Clear Of Cryptocurrencies Despite Economic Downturn

Sudan warns citizens against turning to crypto in times of economic difficulty. Pundits fear an outright ban may be in play. More and more people are turning to Bitcoin as an inflationary hedge. Sudanese state-controlled media reported a warning from the Central Bank Of Sudan (CBOS), advising citizens not to indulge in cryptocurrencies. The warning […]

2022-3-30 00:01


Фото:

Billionaire VC Tim Draper Sticks To Lofty $250K Bitcoin Price Target For 2022 Despite Market Downturn

Draper Fisher Jurvetson founder Tim Draper is unfazed by the latest brutal crypto market sell-off and insists that the cryptocurrency will still reach the $250,000 mark in 2022 or early 2023. Draper Still Expects BTC To Hit $250K In 2022 In early 2018, Draper grabbed headlines after boldly projecting that the price of bitcoin would […]

2021-7-18 16:47


Mythical Games Raises $75 Million Funding To Boost NFT-Based Gaming

The non-fungible token (NFT) market is no raging as much as it used to at the start of the year as demand from retail investors dropped sharply in Q2 2021. Despite the downturn, investments in NFT are still well alive as venture firms believe the NFT market will return to its glory days in the […] The post Mythical Games Raises Million Funding To Boost NFT-Based Gaming first appeared on BitcoinExchangeGuide.

2021-6-11 21:15


Despite Short-Term Outlook, Yearn.finance’s (YFI) Macro Prospects are Ultra Bullish

Yearn.finance’s short-term outlook has been grave, with bears being in full control of its price action as buying pressure begins drying up. The cryptocurrency’s recent descent has come about due to a myriad of different factors, including heightened founder risk, a fractured community, as well as the overall downturn in the DeFi sector. Additionally, relatively […]

2020-10-17 00:00