Frankfurt (13 January 2022) – MV Index Solutions GmbH (MVIS®) today announced that at year-end 2021, there are $2.9bn in digital asset products that are attached to licensed MVIS indices, which equates to 5% of the total market share. The firm is proud to be working their clients (21Shares, 3iQ, VanEck) to provide investors with some of the largest and most liquid investment products in the digital asset space.
In total, the total market capitalization of digital assets skyrocketed during 2021, peaking at over $3tn. In-line with the rise in digital assets market capitalization, AUM for digital asset investment products jumped as well, ending the year around $57bn.
Exhibit 1: Total Assets under Management in Digital Asset Investment Products by Asset Manager
Source: MV Index Solutions. CryptoCompare Digital Asset Management Review, Data as of December 2021.
In 2021, MVIS Launched 22 new digital asset indices. Alongside the firm’s broad digital asset indices, they also launched a classification scheme, to help investors understand the various segments within digital assets. MVIS applies strict and demanding liquidity screening to digital assets to underlie liquid, tradeable products. Among the top ETNs/ETFs, VanEck’s Ethereum product (VETH), which tracks the MVIS CryptoCompare Ethereum VWAP Close, traded at $9.49mn (up 54.7%) in December 2021, capturing 7% of the shares outstanding.
The MVIS CryptoCompare Digital Assets 25 Index (ticker: MVDA25) returned -13.8% for the month. It is a modified market cap-weighted index which tracks the performance of the 25 largest and most liquid digital assets. Most demanding size and liquidity screenings are applied to potential index components to ensure investability. Despite the drop in December, MVDA25 returned 321% for the year ending 2021.
Exhibit 2: Top 100 Digital Asset Performance, 2021
Source: MV Index Solutions. All values are rebased to 100. Data as of 31 December 2021.
Heading into 2022, MVIS is excited to be a part of the continued growth with our clients and partners.