Year-to-date, Exchange Traded Products (ETPs) that hold digital assets have jumped by 93% assets under management (AUC), up from $49.5 billion at the end of 2023 to $95.4 billion, according to a report.
Fineqia (CSE: FNQ) says that the total AUM recorded at the end of May represents a new all-time high for ETPs holding digital assets, surpassing the previous high of $94.4 billion recorded at the end of March.
In May, the total market value of digital assets reportedly increased by 16.9%, to approximately $2.68 trillion from $2.29 trillion.
While the AUM of ETPs holding digital assets rose by 93% year-to-date, the digital assets market cap increased by 51%, from $1.77 trillion.
The approval of spot Bitcoin ETFs in the US have helped – that along with the appreciation of the prices of Bitcoin which currently stands at around $70,000. Bitcoin started that year at about $44,000.
Ethereum products are next in the queue.
“Ethereum ETFs are like the second domino in a long line,” says Fineqia’s CEO Bundeep Singh Rangar. “What started with Bitcoin is now carrying on to ETH and paves the way for multiple altcoins to likely be approved as mainstream digital assets in the future. This is already evident in various parts of the world, fundamentally reshaping investment theses.”