In a financial landscape where traditional assets have often been the primary focus, cryptocurrency exchange-traded funds (ETFs) and exchange-traded products (ETPs) are carving out their own narrative, as from the research and consulting firm ETFGI has shown.

Continuous inflows in July

During the month of July 2023, crypto ETFs and ETPs listed globally saw net inflows of $356m. This marks the second straight month of net positive inflows.

However, when viewed in a broader context, the inflows appear less spectacular. Year-to-date net inflows for 2023 stand at $598m, a significant number yet trailing the figures from past years. In 2021, net inflows had reached an astonishing $4.05bn by the same period, and in 2022, the number was $794m.

This implies that, despite lower inflows compared to last year, the market for crypto ETFs and ETPs remains robust, and interest and capital continue to flow in at a consistent rate.

Surge in assets under management

The standout trend is the significant jump in assets invested in crypto ETFs and ETPs. From $5.79bn at the end of 2022, assets have ballooned by 58.4% to a record $9.18bn as of July 2023, showcasing growing investor confidence in cryptocurrencies, despite fluctuating inflows.

Globally, there were 165 ETFs and ETPs, featuring 478 listings from 37 providers listed across 20 exchanges in 16 countries.

While the net inflows for 2023 have yet to surpass last year’s figure, the significant rise in assets under management indicates an evolving landscape for crypto ETFs and ETPs.

For investors, this could mean that despite a comparatively quieter year in terms of new capital, the existing assets in cryptocurrency-based investment vehicles are growing in value--possibly due to broader market trends or improved management strategies.