CoinShares reported that crypto-derived exchange-traded products (ETPs) had a record-breaking week of inflows, pushing their combined assets under management (AUM) to levels not seen since the peak of the last bull market in 2021. The AUM of crypto investment products now stands at $67 billion, marking the highest level since December 2021. This increase in AUM is attributed to inflows of $5.2 billion so far this year and positive price action in the crypto market.
During the week ending February 16, crypto ETPs saw a record $2.45 billion in inflows, with 99% of those inflows coming from US-listed crypto ETPs, including the 10 approved spot Bitcoin ETFs. James Butterfill, the head of CoinShares research, noted a significant acceleration of net inflows for these ETFs. BlackRock and Fidelity’s ETFs were the recipients of nearly $2.3 billion of last week’s inflows, with BlackRock seeing $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 experienced $623 million in weekly outflows, with over $7 billion leaving the Bitcoin fund since it converted to an ETF on January 1.
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. However, some investors are still betting on a price decrease and added $5.8 million of inflows to short-Bitcoin products.
Ether products saw minor inflows of $21 million and finished the week at around $2,800, reaching a high that was last seen in May 2022.
Altcoin ETPs based on Avalanche, Chainlink, and Polygon have consistently seen weekly inflows this year, with each receiving around $1 million in inflows.
Solana products experienced $1.6 million in outflows, which Butterfill attributed to negative sentiment following the network’s recent downtime in early February.