The first half of 2024 saw a surge in new crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) listed globally, with 37 new products launched, marking a new record. This indicates a growing interest and investment in digital assets. Despite 253 ETF closures during this period, there was a net increase of 624 products, reflecting the expanding market for crypto investments. Many of these products allow investors to gain exposure to digital currencies without directly owning the underlying assets, providing a regulated way to participate in the crypto market.
The U.S. market led in the number of new launches, with 297 products, and also experienced the highest number of closures at 91. BlackRock, as the world’s largest ETF manager by AUM, listed 44 new products in the first half of the year, further dominating the market. The SEC approved a range of spot Bitcoin ETF applications in January and spot Ethereum ETFs in July, signaling regulatory acceptance and growing interest in crypto investments. The distribution of new listings varied across regions, with the U.S., Asia Pacific (excluding Japan), and Europe leading in terms of new products launched.
The global ETF market showed increasing competition with a total of 219 providers contributing to the new listings. These products are available across 35 exchanges globally, offering a diverse range of investment strategies and asset classes. Active funds, which aim to outperform market benchmarks through skilled management and strategic asset allocation, gained traction with 355 active funds, 296 tracking equity indexes, and 92 following fixed-income indexes. The diversity in investment strategies reflects the evolving nature of the industry as investors seek different ways to access and invest in digital assets.
The launch of 37 new crypto ETFs and ETPs in the first half of 2024 reflects the increasing acceptance of crypto as part of diversified investment portfolios. These products have attracted significant interest from both institutional and retail investors looking to gain exposure to digital assets in a regulated and convenient manner. With a total of 877 new products launched globally in the first half of the year, the ETF and ETP market continues to expand and evolve to meet the growing demand for crypto investments. The approved spot Bitcoin and Ethereum ETFs indicate a growing regulatory acceptance of crypto assets as legitimate investment options for a wider range of investors.
Overall, the global ETF market is experiencing significant growth and diversification, with an increasing number of providers offering a range of investment strategies and asset classes. The continued interest in crypto ETFs and ETPs, as evidenced by the record number of new listings in the first half of 2024, highlights the growing appeal of digital assets among investors. With the market showing resilience despite closures, there is a positive outlook for the future of crypto investments through regulated and convenient investment vehicles like ETFs and ETPs.
