Home Crypto analysis of the best ETP and ETF in the crypto world

analysis of the best ETP and ETF in the crypto world

by Janine Lindsey

CoinGecko, a leading data aggregator in the crypto world, has recently published an analysis of the best Exchange Traded Products (ETPs) and Exchange Traded Funds (ETFs) in the industry. These financial products allow investors in traditional exchanges to gain exposure to the performance of cryptocurrencies such as Bitcoin without having to download a wallet or understand the intricacies of the market.

However, unlike SPOT ETFs, which have been eagerly awaited by Bitcoin enthusiasts after several hedge funds’ applications to the Securities and Exchange Commission (SEC), the current ETFs and ETPs only replicate the performance of cryptocurrencies without actually buying the underlying assets. If the applications of major players like BlackRock, VanEck, Wisdomtree, and others are approved, it could revolutionize the investment world for crypto and create a wave of demand.

There are several differences between ETFs and ETPs. ETPs are exchange-traded financial products that offer investors exposure to certain sectors and investment themes, including crypto. ETFs are a subset of ETPs and they allow investors to allocate money into a fund that seeks to replicate the performance of a specific asset or market index.

According to CoinGecko’s analysis, the most traded ETP in the crypto world is the ETN Bitcoin Tracker One (COINXBT) from provider XBT, with a total value of $4.43 billion. The second largest investment product is the ETN Ethereum Tracker One (COINETH), also managed by XBT, with a value of $2.58 billion. In the context of ETFs, the Hashdex Nasdaq Crypto Index FI (HASH11) ranks third with assets of $1.07 billion.

Bitcoin and Ethereum are the most popular assets among the top 25 crypto-themed ETPs, with 12 BTC-based and 7 ETH-based products. However, there is a growing interest in altcoins, as seen with the 21Shares Binance BNB ETP.

The major providers of these investment products are XBT Provider, Hashdex, and Purpose Investment. Canada is the leading origin of ETPs, followed by Sweden, the United States, and Switzerland.

The approval of a SPOT ETF could legitimize Bitcoin as an asset on traditional stock exchanges. Currently, all ETFs in the US that attempt to replicate the performance of cryptocurrencies are “futures” ETFs, which don’t own the underlying assets. Several hedge funds and asset management firms have applied to the SEC for the approval of Bitcoin SPOT ETFs. If approved, it could increase institutional demand and bring legitimacy to the crypto sector.

Overall, the analysis by CoinGecko provides valuable insights into the current landscape of ETPs and ETFs in the crypto world. The potential approval of SPOT ETFs could have significant implications for the industry, driving demand and legitimizing cryptocurrencies on traditional exchanges.

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