Crypto-derived exchange-traded products (ETPs) have experienced a remarkable week of inflows, driving their combined assets under management (AUM) to levels not seen since the peak of the last bull market in 2021, according to CoinShares. The AUM of crypto investment products now stands at $67 billion, marking the highest level since December 2021. This increase in AUM can be attributed to inflows of $5.2 billion so far this year, coupled with positive price action in the crypto market. In the week ending February 16, crypto ETPs recorded record inflows of $2.45 billion, with 99% of it coming from US-listed crypto ETPs, including the 10 approved spot Bitcoin ETFs. BlackRock and Fidelity’s ETFs accounted for nearly $2.3 billion of last week’s inflows, with BlackRock receiving $1.6 billion and Fidelity receiving over $648 million. At the same time, there has been a significant decrease in outflows from established players. Grayscale’s products witnessed weekly outflows of $623 million, with the Bitcoin fund losing over $7 billion since January 1, when it transitioned to an ETF. ARK 21Shares and ProShares ETPs saw combined weekly inflows of $515 million. Bitcoin saw a gain of over 4% between February 12 and February 16, reaching over $52,000 by the end of the week, a level not seen since December 2021. Despite this, some investors are anticipating a price drop and have invested $5.8 million in short-Bitcoin products. Ether products saw minor inflows of $21 million and ended the week at around $2,800, a high it last reached in May 2022. Altcoin ETPs based on Avalanche, Chainlink, and Polygon have consistently seen weekly inflows this year, each receiving around $1 million. However, Solana products experienced outflows of $1.6 million, which can be attributed to negative sentiment following the network’s recent downtime in early February.
$67B AUM Propels Crypto Exchange-Traded Products to Record Highs