European Crypto ETPs are becoming popular

Dec 11, 2024

To investors,

Crypto is an international sport. People around the world want to allocate to digital assets. They buy spot bitcoin and crypto assets on crypto-native exchanges. They buy US-based public equities related to the industry. They buy US-based ETFs. And they buy internationally listed ETPs that give them exposure to crypto assets.

This last point—the internationally listed ETPs—is an area that gets very little coverage so I asked the team at DeFi Technologies to put together a guest post on the state of crypto ETPs outside the United States.

Here is what they said:

The Rise of Crypto ETPs in Europe

While ETFs in the U.S. often dominate discussions—especially following the landmark introduction of Bitcoin ETFs earlier this year—Europe has quietly built a decade-long lead in digital asset exchange-traded products (ETPs). In 2015, Johan Wattenström’s XBT Provider launched the world’s first Bitcoin ETP on Nasdaq Stockholm (later acquired by CoinShares), creating a regulated pathway for investors to gain Bitcoin exposure through traditional financial markets.

By listing on Nasdaq Stockholm, Sweden set a precedent for integrating digital assets into traditional markets, emphasizing compliance, full collateralization, and transparent custody solutions. Over the years, the regulatory landscape for crypto ETPs in Europe has continued to mature. The upcoming Markets in Crypto-Assets (MiCA) Regulation, set to take full effect in 2025, promises a harmonized framework for digital asset issuers across all EU member states. MiCA ensures enhanced investor protection, institutional clarity, and a unified market, further cementing Europe’s leadership in digital asset ETPs.

A Market Driven by Diversity and Innovation

Today, European issuers such as Valour, CoinShares, and 21Shares provide access to a broad spectrum of digital assets through regulated products listed on traditional stock exchanges. These include not only Bitcoin and Ethereum but also altcoins, staking-enabled ETPs, and even large-cap memecoins. This diversity reflects Europe’s commitment to addressing the needs of an increasingly sophisticated crypto investor base.

Bitcoin accounts for $1.97 trillion of the $3.66 trillion global crypto market cap, but the remaining $1.69 trillion highlights significant opportunities for regulated altcoin investments. This potential is reflected in Europe’s crypto ETP landscape, where Bitcoin ETPs hold 49.66% of total AUM, leaving considerable room for growth in altcoin-focused products. Investor interest is particularly strong in alternatives like Ethereum, Solana, and diversified crypto baskets.

Notably, Valour’s Solana ETP has surpassed $400 million in AUM, while newer products like SUI and DOGE ETPs have gained traction, nearing a combined $40 million in AUM in Sweden alone in less than two months since their listing. The introduction of staking-enabled ETPs has further driven growth, enabling investors to earn staking rewards while holding regulated products within traditional brokerage accounts.

Breaking Down the Numbers

Total Market Snapshot:

221 Crypto ETPs: Currently listed in Europe, showcasing the region’s dominance in the global crypto ETP market.
$19.86 billion: Total assets under management (AUM) for European crypto ETPs.

$695.75 million: Net inflows over the past six months, indicating steady growth and increased investor interest.

Insights from the Data

Dominance of Bitcoin and Ethereum: Bitcoin and Ethereum account for 65% of total AUM, reflecting their status as the foundational pillars of the crypto market.
Growth of Solana: Solana’s 12.30% share of AUM highlights growing confidence in its high-performance Layer 1 blockchain.
Diversified Products: The 7.16% share held by diversified crypto baskets underscores investor appetite for broad exposure to the crypto market, offering a hedge against volatility in individual assets.
Emerging Players: XRP, Binance (BNB), and newer entries like Sui (SUI) demonstrate the market's evolving landscape, where niche use cases and innovation attract significant investments.

Key Trends Shaping the Market

Market Share: Over 50% of global crypto ETPs are listed on European exchanges highlighting the region’s pioneering role in regulated digital asset investments according to Morningstar.

Diverse Offerings: European issuers have launched products tied not only to Bitcoin and Ethereum but also to altcoins, DeFi indices, and even memecoins such as Doge.

Europe has cemented its position as a leader in the global crypto ETP space by offering a diverse range of digital assets tailored to institutional and retail investors. The combination of regulatory clarity, market innovation, and sustained growth signals a bright future for crypto ETPs in the region. With the implementation of MiCA on the horizon, Europe is poised to expand its influence further and set the standard for regulated digital asset investment products worldwide.

I hope you enjoyed this guest post from Curtis Schlaufman, VP of Marketing & Communications, and Rafael Recavarren, Head of Corporate Development, at DeFi Technologies (OTC: DEFTF, CBOE CA: DEFI), which owns the asset mangement firm Valour.

At Valour, they are excited to be a key player in the European market alongside several other great peers. Today, they have made a significant stride by launching 20 new products—our largest single-day rollout yet. These offerings include projects like Sei, World Chain, Render, Aerodrome Finance, and THORchain, reflecting their dedication to innovation and digital asset ETP market expansion.

Hope everyone has a great day. I’ll talk to you tomorrow.

-Anthony Pompliano

Founder & CEO, Professional Capital Management

Anthony & Polina Pompliano Discuss Bitcoin, Microstrategy, the national vibe shift, and Daniel Penny

Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss Microstrategy owning 2% of all bitcoin supply, Daniel Penny case, UnitedHealthcare CEO shooting, the vibe shift happening in America, politics, and asset prices.

Enjoy!

Podcast Sponsors

Ledger - Ledger secures 20% of the world’s digital assets. Upgrade to Ledger Flex and get $70 in Bitcoin.
Meanwhile - The world’s first licensed and regulated life insurance company built for the Bitcoin economy. Learn how to tax-optimize your BTC holdings for your life and beyond.
BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.
Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.
Xapo - Xapo Bank is the only way to bank with Bitcoin.
Polkadotis a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.

The Pomp Letter