Funds Double Down on Bitcoin and Ether with Over 180 New ETPs

Surge in Crypto ETPs Amid Market Downturn

Investment firms are ramping up their bets on Bitcoin and Ether, launching over 180 new exchange-traded products (ETPs) since the crypto bear market began. These products, which include exchange-traded funds (ETFs) and trust products, reflect a strong belief in the long-term resilience of cryptocurrencies despite the current market slump.

Bitcoin and Ether Dominate ETP Investments

A staggering 95% of these new ETPs focus on Bitcoin and Ether, highlighting their status as the most trusted and widely adopted digital assets. This concentration underscores investor confidence in these two cryptocurrencies, even as the broader market faces significant volatility.

Why ETPs Are Gaining Popularity

ETPs offer a regulated and secure way for both retail and institutional investors to gain exposure to cryptocurrencies. By trading on traditional stock exchanges, these products minimize the risks of hacks and theft, providing a safer alternative to direct crypto investments.

Market Trends and Investor Appetite

Despite a 70% decline in the total value of crypto assets, dropping to $24 billion, the launch of new ETPs has not slowed. This trend indicates that investment firms remain optimistic about the future of digital assets. In 2022 alone, crypto investment products attracted $453 million in net inflows, with a significant portion allocated to Bitcoin.

Diversification Strategies Emerge

While Bitcoin and Ether remain the focal points, there is a growing interest in diversified baskets that combine the top five or ten cryptocurrencies by market capitalization. This approach allows investors to spread risk while still benefiting from the growth potential of the broader crypto market.

The launch of these ETPs signals a vote of confidence in the future of cryptocurrencies, even during one of the coldest market periods. As the market evolves, the demand for regulated and diversified crypto investment products is expected to grow, further solidifying Bitcoin and Ether's central role in the industry.