Record Week of Inflows Bolsters Crypto ETPs' Assets to $67 Billion
Summary:
An unprecedented amount of investments into crypto-based exchange-traded products (ETPs) has led their combined assets under management (AUM) to soar to a total of $67 billion, the highest since December 2021. The U.S. listed crypto ETPs stand as the significant contributors, with a landmark $2.45 billion inflows observed in the week ending Feb. 16. Investment Goliaths, BlackRock and Fidelity, experienced nearly $2.3 billion of the past week's inflows. Bitcoin ended the week valued above $52,000, and Ether products wrapped up the week around the $2,800 mark. Meanwhile, altcoin ETPs tied to Avalanche, Chainlink, and Polygon have also seen steady weekly inflows over the year.
A historic influx of funds into crypto-based exchange-traded products (ETPs) has sent their combined assets under management (AUM) to heights unseen since the 2021 bull market peak, CoinShares reports. As of now, the total value of assets in crypto investment products is at an astounding $67 billion, the highest it has been since December 2021, indicates head researcher James Butterfill in his Feb. 19 report. He attributes this elevation in AUM to considerable annual inflows of $5.2 billion and the optimistic behavior of the crypto market.
These findings are accompanied by a landmark $2.45 billion week-over-week inflows into crypto ETPs ending on Feb. 16, with a whopping 99% contribution from U.S. listed crypto ETPs, including the approved batch of 10 spot Bitcoin ETFs, which experienced a noteworthy rise in net inflows, states Butterfill. BlackRock and Fidelity's ETFs made up nearly $2.3 billion of the past week's inflows, with $1.6 billion and over $648 million respectively. Butterfill further adds, "At the same time, withdrawals from existing players have drastically plummeted." Grayscale's products experienced a weekly outflow of $623 million -- with the company's Bitcoin (BTC) fund witnessing an exit of over $7 billion since Jan. 1, when it transitioned to an ETF.
ARK 21Shares and ProShares ETPs reported aggregate weekly inflows of $515 million, according to CoinShares. Correspondingly, Bitcoin appreciated by over 4% within the week from Monday, Feb. 12 to Friday, Feb. 16, as documented by Cointelegraph Markets Pro. It concluded the week at an incredible $52,000 -- a feat last accomplished in December 2021.
Notwithstanding, a group of investors are anticipating a price drop and funneled an additional $5.8 million into short-Bitcoin products. In comparison, Ether (ETH) products witnessed relatively minuscule inflows of $21 million and ended last week around $2,800, matching its May 2022 peak.
Altcoin ETPs pegged to Avalanche (AVAX), Chainlink (LINK), and Polygon (MATIC) were distinctive for achieving steady weekly inflows this year, Butterfill highlighted, each accruing roughly $1 million in inflows. Solana (SOL) products experienced $1.6 million in outflows, which Butterfull ascribes to the "affected sentiment" from the network's previous temporary halt in early February.
Published At
2/20/2024 3:32:28 AM
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