Record inflows drive crypto ETP assets under management to levels not seen since December 2021. Bitcoin ETFs lead the surge, while Grayscale sees significant outflows.
A surge in investments flooded crypto-derived exchange-traded products (ETPs) during the past week, propelling their combined assets under management (AUM) to levels reminiscent of the peak witnessed during the last bullish trend in 2021, reports CoinShares.
The latest data reveals that the AUM for crypto investment products has soared to $67 billion, marking a milestone not seen since December 2021, as stated by CoinShares' research head, James Butterfill, in a report dated February 19. Butterfill attributes this rise in AUM to inflows totaling $5.2 billion since the beginning of the year, coupled with positive movements in the crypto market prices.
Notably, the week ending February 16 witnessed an unprecedented influx of $2.45 billion into crypto ETPs, with a staggering 99% of the total attributed to ETPs listed in the United States. This surge in inflows includes contributions from the 10 approved spot Bitcoin ETFs, which experienced a remarkable surge in net inflows, according to Butterfill.
Last week's inflows were primarily dominated by BlackRock and Fidelity's ETFs, which collectively attracted nearly $2.3 billion. BlackRock secured $1.6 billion, while Fidelity garnered over $648 million.
Conversely, established players experienced a significant decrease in outflows. Grayscale, for instance, witnessed weekly outflows amounting to $623 million. Notably, Grayscale's Bitcoin (BTC) fund has seen an exodus of over $7 billion since January 1, when it transitioned into an ETF.
During the same period, Bitcoin recorded a gain of over 4%, reaching a value exceeding $52,000 by Friday, February 16, according to Cointelegraph Markets Pro. This marks a significant milestone, as it is the highest value observed since December 2021.
However, despite the optimistic market sentiment, some investors are hedging their bets against a potential downturn in prices, directing $5.8 million into short-Bitcoin products.
Meanwhile, inflows into Ether (ETH) products remained relatively modest, totaling $21 million. Ether closed the week at approximately $2,800, reaching levels last seen in May 2022.
Altcoin ETPs linked to Avalanche (AVAX), Chainlink (LINK), and Polygon (MATIC) have consistently attracted weekly inflows throughout the year, each receiving around $1 million in investments, according to Butterfill's observations.
On the contrary, Solana (SOL) products experienced outflows amounting to $1.6 million, a trend attributed by Butterfill to the recent downtime experienced by the network in early February, which adversely impacted investor sentiment.