CRB Monitor Chart of the Month: An Update On Cryptocurrency-themed ETPs

CRB Monitor Chart of the Month: An Update On Cryptocurrency-themed ETPs

March 2026

James B. Francis, CFA, Chief Research Officer, CRB Monitor 

Peter Simcox, Senior Analyst, CRB Monitor 

Tamara Guy, Research Analyst, CRB Monitor

By Q1 2026 the spot crypto exchange traded product (ETP) market has grown into a major institutional gateway for digital asset exposure, with total assets under management of more than $130 billion globally. Spot Bitcoin ETFs dominate the sector, holding more than $110 billion, while Ethereum ETFs account for roughly $20 billion. Since the launch of U.S. spot Bitcoin ETFs in early 2024, the pace of adoption has been fierce: these products have attracted tens of billions of dollars in inflows during their first two years. As a result, ETPs now hold a meaningful share of underlying crypto markets. And this fact becomes important when we take a look at risk, which is not going away as the market for crypto ETPs expands.

CRB Monitor covers more than 900 digital asset-themed exchange traded products; with that said, the DA ETP market is highly concentrated among a few major issuers such as BlackRock, Fidelity, and Grayscale. These funds capture the majority of assets and trading volume due to their scale and distribution networks. And because higher volume and size = greater liquidity = lower risk, the large ETPs are likely to keep attracting assets, leaving the rest of the pack to fight over table scraps. As such, the barriers to entry for any new ETPs severely hamper an issuer’s survival in a very competitive space.

The investment objective of most digital asset-themed ETPs is to replicate the performance of one cryptocurrency (or a basket of cryptocurrencies), but flows into and out of an ETP can be entirely independent of the underlying price movement of the holdings. That is why, if one wants to understand where the market is at a given time, it is important to look at both the performance and the net cash flows related to each fund.

 The following tables list the 10 largest crypto-themed and 10 largest DARB ETFs as of 2/28/2026:

Top 10 Spot Crypto ETFs by AUM as of 2/28/2026

Source: Issuer & Exchange Websites 

As of the date of this update, CRB Monitor now maintains data on over 900 globally-listed, digital asset-themed exchange traded products (more than 600 that hold at least one of over 100 different spot cryptocurrencies directly or via derivatives). Among these 900 are exchange traded products that hold more than 50% in publicly listed digital asset-related businesses (DARBs), which we include in our analyses below.

Top 10 DARB-themed ETFs by AUM as of 2/28/2026

Source: Issuer & Exchange Websites

The following chart tracks the performance over this period for a sample of spot crypto and DARB-themed ETFs:

Source: Yahoo Finance, CRB Monitor

What we are seeing in the table above is that the Ethereum-themed funds (-41%) have vastly underperformed the Bitcoin-themed funds (0.03%) over this period while simultaneously outgrowing the BTC funds on a percentage basis. Why has Bitcoin outperformed Ethereum so significantly? There are several reasons for this (e.g., investor acceptance, name recognition, costs) and we plan to dive into those in a future article. Suffice it to say, there is a persistent Bitcoin/Ethereum spread which is larger than one would expect.

In terms of size and number of funds, DARB-themed exchange-traded products have largely played a supporting role to the massive spot crypto ETF universe over the last 2 years. Looking at the performance above, we see that returns have been strong across the board while asset size remains relatively modest (see the table above).

[**It is worth noting that DARBs (digital asset-related businesses), due to their exposure to cryptocurrencies, present “look-through” exposure to the various risks inherent native to the crypto universe, such as investment risk, operating risk, and regulatory risk. The CRB Monitor database of more than 2,700 digital asset-related businesses is an excellent source of data related to these risks.**]

Correlations and Risk – Spot Crypto and DARB-themed ETFs

Source: Yahoo Finance, CRB Monitor

Taking a look at the correlation table for the 19-month performance period ending 2/28/26, there are a few surprises. While we are not surprised at the high correlation between IBIT and ETHA, we are surprised at the even higher correlations between the DARB and spot crypto ETPs in this analysis. It is also comforting to see that the correlations of the DARB-themed group (BLOK, DAPP, and BITQ) are very high, which would suggest that investors have several choices in that space that will offer similar returns. There are differences in volatility (see Annualized Standard Deviation), and (for example) we could say that over this period BLOK offered strong performance and the lowest relative volatility while having high correlation with both Bitcoin and Ethereum.

ETP Asset Growth 2026

It is generally accepted that digital asset-related ETPs have experienced rapid asset growth since they exploded on the scene; however, of late this growth has subsided. The following table displays the net growth of the top 20 digital asset-themed ETFs in 2026, which featured a surge of new money in March, particularly into iShares funds:

Source: ETF Book, CRB Monitor

Regulatory Updates - March 2026

The regulatory landscape for spot cryptocurrency exchange-traded products (ETPs) in 2026 has evolved rapidly, driven by broader structural reforms in crypto market regulation across major jurisdictions. While many rules do not target ETPs exclusively, they directly shape how spot crypto ETPs are approved, structured, and distributed. Nevertheless, this global progress toward normalization is a strong indication that cryptocurrencies are here to stay for the foreseeable future.

US Regulations

U.S. commodity classification expansion

In 2026, U.S. regulators signaled that a broader range of crypto assets would be treated as commodities rather than securities. This shift significantly reduces legal uncertainty, allowing issuers to structure spot ETPs without triggering securities registration requirements. As a result, the pipeline for non-Bitcoin and non-Ethereum spot ETPs has expanded materially, opening the door to products tracking a wider set of tokens. (Source)

Token taxonomy and market structure guidance

Regulators introduced clearer frameworks distinguishing between different types of digital assets, including commodities, securities, and tokenized instruments. This helps define which regulator has oversight and what compliance obligations apply. For spot ETP issuers, this clarity simplifies product design, disclosure, and custody arrangements, making approvals more predictable and scalable. (Source)

Institutionalization and standardization

Most major jurisdictions now require crypto service providers to be licensed and to meet consistent standards for custody, governance, and transparency. This has led to more reliable trading infrastructure and pricing data—both essential for constructing and maintaining spot ETPs. As a result, ETP issuers can operate within a more predictable and institution-friendly ecosystem. (Source)

International Developments

Europe’s MiCA framework
The EU’s MiCA regulation has become a global benchmark by creating a unified regulatory regime across member states. It introduces strict requirements for custody, disclosures, and operational resilience, while allowing firms to passport services across the EU. For spot ETPs, this means easier cross-border distribution but tighter constraints on which venues and counterparties can be used. (Source)

Stronger AML and reporting requirements
Enhanced anti-money laundering rules and global reporting standards have significantly increased oversight of crypto transactions. Custodians and trading venues supporting ETPs must now meet rigorous compliance obligations, improving traceability and reducing illicit activity risks. This strengthens the case for institutional adoption of spot crypto products. (Source)

Improved market integrity and pricing
Regulators have introduced measures to address concerns about market manipulation and fragmented liquidity. Requirements around data retention, surveillance, and pricing methodologies have improved the reliability of benchmarks used by spot ETPs. This leads to more accurate net asset values and strengthens investor confidence. (Source)

As crypto investors continue to wade into a vast sea of operational risk and volatility, there are a number of considerations that will be essential components of compliance and risk management beyond those required for typical ETF investing. Rather, it can be assumed that an investment in a spot cryptocurrency ETF is akin, from a risk perspective, to an investment in the cryptocurrency itself. And it should not be overlooked that cryptocurrencies are actively traded on global exchanges of varying qualities and degrees of regulation, and as such lends itself to illicit activity. CRB Monitor reviews global regulators of crypto activity on an ongoing basis to ensure that our clients are fully aware of all the embedded risks in this volatile space.

Wondering what a Tier 1, Tier 2 or Tier 3 DARB is?

See our seminal ACAMS Today white paper Defining ‘Digital Asset-related Business’ and Digital-Asset Related Businesses - What Financial Institutions Need to Know