Share this article
Morgan Stanley Says Crypto ETPs Continue to Grow Despite Bear Market
There are more than 180 crypto ETF/ETP and trust products, and half of these have launched since the bitcoin bear market started, the bank said.
By Will Canny
Updated May 9, 2023, 3:58 a.m. Published Oct 7, 2022, 10:06 a.m.
Make us preferred on Google
The market for cryptocurrency exchange products continues to grow, a sign that institutional interest in the digital assets sector remains strong despite concerns of a crypto winter, according to Wall Street giant Morgan Stanley (MS).
There are more than 180 active crypto exchange-traded funds (ETF), exchange-traded-products (ETP) and trusts. Half of these products have launched since the bitcoin bear market, despite total assets dropping 70% to $24 billion from $84 billion, Morgan Stanley said in a research report on Thursday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“The crypto exchange products market will continue to grow,” the report said, adding that the “bear market hasn’t deterred asset managers and financial companies from launching ways for their clients to get access to digital assets.” Fund launches accelerated in 2022 despite the decline in crypto prices, with eight new ETP launches per month on average in the last year.
Crypto ETPs are traded on exchange, much like equities, and track the performance of an underlying asset. Their popularity has been growing as they allow clients to invest in cryptocurrencies without having to invest in the underlying digital asset themselves.
In the U.S., WisdomTree (WETF) is the only publicly traded “pure-play ETF issuer,” the note said, and while it manages less than 1% of the total crypto ETP universe its market share of flows is 5%, and the “scale of its offering is well ahead of traditional asset manager peers.”
Morgan Stanley expects more crypto exchange-traded products to be launched around the world in the coming quarters, and while the focus will remain on bitcoin , new products will likely cover a large number of crypto assets and themes, it said.
Read more: Crypto Exchange-Traded Products Are Blossoming in Europe
More For You
Specialized AI detects 92% of real-world DeFi exploits
New research claims specialized AI dramatically outperforms general-purpose models at detecting exploited DeFi vulnerabilities.
What to know:
- A purpose-built AI security agent detected vulnerabilities in 92% of 90 exploited DeFi contracts ($96.8 million in exploit value), compared with 34% and $7.5 million for a baseline GPT-5.1-based coding agent running on the same underlying model.
- The gap came from domain-specific security methodology layered on top of the model, not differences in core AI capability, according to the report.
- The findings come as prior research from Anthropic and OpenAI shows AI agents can execute end-to-end smart contract exploits at low cost, accelerating concerns that offensive AI capabilities are scaling faster than defensive adoption.
Top Stories
