Cryptocurrency exchange products: top largest ETFs and ETPs in the world

Bitcoin Tracker One (COINXBT) of the XBT provider with assets of $4.43 billion was declared the world’s largest exchange-traded product (ETP). COINBXT is 71.6% more than the second in the ranking Ethereum Tracker One (COINETH) with $2.58 billion. Which is also a product of XBT. Both (COINXBT and COINETH) provide the opportunity to buy exchange-traded bonds (ETN).

At the same time, among exchange-traded funds (ETFs), which are a subtype of ETPs, the first place in terms of assets is Hashdex Nasdaq Crypto Index FI (HASH11) with $1.07 billion. Registered in Brazil, HASH11 is the largest fund that offers to track related cryptocurrency projects more widely, both among ETFs and ETPs.

Main types of ETFs and ETPs

Cryptocurrency ETFs may be more widely known as the Securities and Exchange Commission (SEC) delays the approval process for spot ETFs. However, only nine of the 25 cryptocurrency ETPs are specific to ETFs, and their total assets amount to $4.52 billion.

The other five are ETNs, which account for $8.09 billion in assets, eight exchange-traded commodities (ETCs) account for $1.68 billion. The remaining three include one investment trust and two closed-end funds (CEFs).

Bitcoin and Ethereum are in the lead

Bitcoin and Ethereum are the two most popular options among all 25 ETPs: 12 specialize only in BTC, and seven only specialize in ETH. In comparison, only three products focus on a broader range of cryptocurrencies and two are blockchain ETFs out of the entire top 25.

All of this suggests that traditional finance (TradFi) feels more confident in Bitcoin and Ethereum compared to investment options that investors are wary of, most notably altcoins.

To confirm the thesis, researchers pay attention to 21Shares Binance BNB ETP (ABNB), which is in 15th place in the ranking. It is the only one of the top 25 ETPs that is focused on Binance Coin (BNB).

Who are the top ETF and ETP providers?

The entire top 25 is represented by 14 providers representing eight countries. One of the main players bringing cryptocurrency to TradFi is the XBT provider. It accounts for four of the 25 ETP rankings. They have assets of $7.83 billion – 52.1% of the total assets of all participants on the list.

This is followed by Hashdex and Purpose, which have $1.27 billion and $1.02 billion respectively in the top 25 ETPs. Each of these providers has two products in the rating. Interestingly, 21Shares has four positions in the ranking. However, in terms of the total number of assets, these four are far behind the providers listed above – $767.92 million.

Countries represented in the top

Six of the 25 ETPs in the ranking are registered in Canada, making it the leader among all countries. It is followed by Sweden, the US and Switzerland, each with four ETPs. The remaining participants in the rating are registered in countries and regions such as the island of Jersey, Brazil, Germany and Liechtenstein.

What is the difference between ETF, ETP, ETC

Exchange traded products (ETPs) refer to instruments that provide investors with different investment options. In particular, they play a role in combining traditional markets with crypto markets.

Cryptocurrency ETPs are divided into three types: the above-mentioned exchange traded funds (ETFs), as well as ETNs and ETCs. ETC can also be classified as a cryptocurrency traded on exchanges.

Cryptocurrency ETFs provide more direct access to crypto assets and diversification where it is needed: for example, Hashdex Nasdaq Crypto Index FI (HASH11) and ProShares Bitcoin Strategy ETF (BITO). Cryptocurrency ETFs may be more familiar to the crypto community, as the term itself is almost always used in reference to US-based ETPs.

On the other hand, in Europe they more often use the division into cryptocurrency products: ETF, ETN and ETC. The point is the difference in the regulation of funds by officials.

Cryptocurrency ETNs are somewhat similar to debt securities. They “follow” certain crypto-assets, although the provider itself is not directly “backed” with them. Examples of ETNs are XBT Provider Bitcoin Tracker One (COINXBT) and 21Shares Bitcoin ETP (ABTC).

Cryptocurrency ETC, on the contrary, are physically secure. That is, the provider has the crypto asset itself on hand. Examples of ETCs are Group Physical Bitcoin (BTCE) and CoinShares Physical Bitcoin (BITC).

Top Cryptocurrency ETFs and ETPs

Top 25 ETFs and ETPs by assets, current as of mid-September 2023:

Rating methodology

Analytical
conclusions CoinGecko included a study of the 25 largest exchange-traded cryptocurrency-focused products by dollar assets, taken from Bloomberg websites and the official web pages of specific ETPs. During the research process, trusts and closed-end funds were included here. At the same time, products that were not related to cryptocurrency or for which there was insufficient reliable information were not taken into account.

Grayscale Trust (GBTC) was excluded from the study because it trades over-the-counter (OTC).

This work is for informational and illustrative purposes only. This material and the information contained herein do not constitute financial, personal or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts. Always do your own research and be careful when investing in any crypto or financial asset.