An increasing number of funds are betting on the futures of top-ranking cryptocurrencies Bitcoin and Ethereum, both of which are taking a hit in the current bear market.
Despite the recent dip in prices over the last year, various investment firms are launching a range of exchange-traded funds. The opinion is that reigning cryptocurrencies like Bitcoin and Ethereum will emerge victorious.
Over Half of Crypto ETPs Emerge Amid Crypto Winter
Out of the 180 crypto exchange traded products available around the world, over half were launched just recently. According to a note by Morgan Stanley, they launched after the bear market started.
Moreover, the proliferation of these trust products continues as the total worth of assets in the crypto market dropped by 70 percent. As crypto prices tanked, the value of the market fell to $24 billion.
Among the 180 funds, almost 95 percent focus on Bitcoin and Ethereum, according to Morgan Stanley.
The appealing aspect of ETPs is how they give investors exposure to speculative and risky assets like cryptocurrencies via a regulated stock exchange.
In this way, institutional and retail investors don’t face concerns about how they’ll keep their digital assets secure and avoid hacks.
Bitcoin Proponents ‘Not Giving Up’
Solidus Labs, a crypto risk monitoring firm, is staying on top of investors views. Based on statements from Chen Arad, the co-founder, appetite for the asset generally diminishes as the market slows down.
That’s because prices take a hit and many investors lose money in the process. Fortunately, it doesn’t seem like this will be the case in the future. Arad says that the crypto community won’t give up.
Crypto Investment Products Bring in $453 Million 6
The positive sentiment among proponents goes to show how popular crypto exchange traded products are becoming. Moreover, such products have brought in about $453 million of inflows.
One report by Coinshares, a digital asset manager, even narrows down where a big chunk of this goes. Much of these funds go towards investment vehicles that cover the major cryptocurrencies, like Bitcoin and Ethereum.
Rather than focusing on a specific cryptocurrency, it is a complete basket of different cryptocurrencies.
These include the top-ranking digital assets by market capitalization, such as Ripple, Cardano, and Solana as well
The director of research at 21sgares, Eliezer Ndinga, such products offers much more quality than other available options in the crypto sector.
US Regulators Turn Down Applications for Crypto ETPs
Among the various crypto ETPs available, the most active ones are based outside the US. Most of these countries are crypto-neutral, if not crypto-friendly, like Brazil, Australia, and Switzerland.
Regulators in the US turned down numerous applications for spot crypto funds, which work by mirroring the token’s price. Their reasons for doing so include low cooperation with regulated markets to share surveillance.