Morgan Stanley Says Crypto ETPs Continue to Grow Despite Bear Market

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.MorganStanley says the crypto bear market hasn't deterred asset managers and financial companies from launching ways for their clients to get access to digital assets. By willcanny99

The market for cryptocurrency exchange products continues to grow, a sign that institutional interest in the digital assets sector remains strong despite concerns of aThere are more than 180 active crypto exchange-traded-funds , exchange-traded-products 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.

“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.

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.

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MorganStanley willcanny99 a sign that institutional interest in the digital assets sector remains strong

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