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

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8 min.

Coingecko resource analysts published the results of a recent study, compiling a list of the world's largest exchange-traded products related to cryptocurrencies.

The world's largest exchange traded product (ETP)Bitcoin Tracker One (COINXBT) of the XBT provider with assets of $4.43 billion has been announced. COINBXT is 71.6% larger than the second-ranked 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 subset of ETPs, the Hashdex Nasdaq Crypto Index FI (HASH11) is in first place by assets with $1.07 billion. Registered in Brazil, HASH11 is the largest fund that offers tracking of cryptocurrency-related projects more broadly, both among ETFs and among ETP.

Main types of ETFs and ETPs

Cryptocurrency ETFs may be better known and“on the rumor” due to the fact that the Securities and Exchange Commission (SEC) is delaying 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 populardirections among all 25 ETPs: 12 specialize only in BTC, and seven only 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 this suggests that representativesThe traditional financial system (TradFi) feels more confident in Bitcoin and Ethereum compared to investment options that investors are wary of, most notably altcoins.

To support the thesis, the researchers drawattention 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 whorepresent eight countries of the world. 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.

Next are Hashdex and Purpose, which have $1.27billion 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 ranked ETPs are registered inCanada, which makes 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 toinstruments that provide investors with various investment opportunities. 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 anddiversification 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 ETNssecurities. 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:

Rank	Cryptocurrency ETF/ETP	Number of assets
1	XBT Provider Bitcoin Tracker One (COINXBT)	$4.426 million
2	XBT Provider Ethereum Tracker One (COINETH)	$2.580 million
3	Hashdex Nasdaq Crypto Index FI (HASH11)	$1.074 million
4	ProShares Bitcoin Strategy ETF (BITO)	$915 million
5	Purpose Bitcoin ETF (BTCC)	$819 million
6	XBT Provider Bitcoin Tracker Euro (COINXBE)	$471 million
7	Amplify Transformational Data Sharing ETF (BLOK)	$466 million
8	Bitwise 10 Crypto Index Fund (BITW)	$439 million
9	ETC Group Physical Bitcoin (BTCE)	$437 million
10	CI Galaxy Ethereum ETF (ETHX.B)	$376 million
11	CI Galaxy Bitcoin ETF (BTCX.B)	$364 million
12	XBT Provider Ethereum Tracker Euro (COINETHE)	$357 million
13	CoinShares Physical Bitcoin (BITC)	$ 280 million
14	21Shares Bitcoin ETP (ABTC)	$259 million
15	21Shares Binance BNB ETP (ABNB)	$220 million
16	Purpose Ether ETF (ETHH)	$205 million
17	21Shares Ethereum Staking ETP (AETH)	$198 million
18	Hashdex Nasdaq Bitcoin ETF (BITH11)	$193 million
19	3iQ The Bitcoin Fund (QBTC)	$175 million
20	WisdomTree Physical Bitcoin (BTCW/WBIT)	$174 million
21	VanEck Bitcoin ETN (VBTC)	$155 million
22	CoinShares Physical Ethereum (ETHE)	$126 million
23	3iQ The Ether Fund (QETH)	$116 million
24	First Trust Indxx Innovative Transaction & Process ETF (LEGR)	$107 million
25	21Shares Crypto Basket Index ETP (HODL)	$91 million

Rating methodology

Analytical
CoinGecko's findings included 25 studieslargest exchange-traded cryptocurrency-focused products by dollar assets, taken from Bloomberg websites and 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.character. 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.