Spot Bitcoin ETFs Could Eclipse Current $50 Billion Crypto ETP Market: BitMEX

Dec. 27, 2023
Spot Bitcoin ETFs Could Eclipse Current $50 Billion Crypto ETP Market: BitMEX

United States-approved spot Bitcoin exchange-traded funds (ETFs) could eclipse the entire cryptocurrency exchange-traded product (ETP) market. According to new data from BitMEX research, the existing global market for crypto ETPs includes about 150 products totaling $50.3 billion in assets under management.

The list includes spot and futures funds that typically track the performance of leading cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). The dominance of BTC within the crypto ETP space is prominent, with the total value of Bitcoin ETFs alone standing at an impressive $35.4 billion. Major products contributing to this figure include the Grayscale Bitcoin Trust (GBTC), with assets totaling $27.08 billion, and the Proshares Bitcoin Strat ETF (BITO), with $1.65 billion in assets.

Bitwise And Van Eck Predict Success Of Potential Spot Bitcoin ETFs

Industry commentators believe the approval of a spot Bitcoin ETF — widely pegged to be approved by the SEC as early as Jan. 10 —  could potentially double the investment in crypto ETPs. 

Crypto investment fund Bitwise predicted on December 14 that spot BTC ETFs would emerge as the most successful ETF product ever introduced. The company expects ETFs to surpass $72 billion in assets under management within the next five years, more than doubling the current market.

On the other hand, global fund manager Van Eck adopted a more conservative stance. The company estimated that about $2.4 billion would flow into spot Bitcoin products during the first quarter of 2024.

Despite being significantly lower than Bitwise’s optimistic projection, this figure still represents a significant increase in capital influx into potential spot BTC ETFs. While the US has not yet approved a spot BTC ETF, other countries such as Germany, Australia, and Canada already allow investors to buy shares in spot Bitcoin ETFs.

On Dec. 21, an ETF research firm ETFGI report disclosed that crypto ETFs globally garnered year-to-date net inflows of $1.6 billion. Out of this total, $1.31 billion was accumulated in November alone. The overall investment is almost twice the $750 million net inflows into crypto ETPs in 2022. 

Bitcoin ETFs
(Source: ETFGI)

Of the 150 crypto funds, the top 20 ETFs attracted the largest volume of investment, totaling $1.3 billion inflows during 2023. Launched during the crypto bull market in October 2021, the ProShares Bitcoin Strategy ETF (BITO) experienced the highest inflows. It captured an additional $278.7 million in 2023.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.