Cryptocurrency derivatives exchange-traded products (ETPs) have experienced a remarkable surge in inflows, propelling total assets under management (AUM) to their highest level since the peak of the last bull market in 2021, as reported by CoinShares.
James Butterfill, the head of research at CoinShares, highlighted in a report on February 19 that the AUM of cryptocurrency investment products has reached $67 billion, marking the highest level since December 2021. Butterfill attributed this increase in AUM to the substantial year-to-date inflows of $5.2 billion and the positive movements in the cryptocurrency market prices.
The week ending February 16 witnessed record inflows of cryptocurrency ETPs, totaling $2.45 billion, with U.S.-listed cryptocurrency ETPs accounting for 99% of the inflows, including 10 approved spot Bitcoin ETFs. Butterfill noted that ETF net inflows experienced a significant acceleration during this period.
BlackRock and Fidelity ETFs were among the recipients of substantial inflows last week, with nearly $2.3 billion flowing into these funds. Specifically, BlackRock received $1.6 billion, while Fidelity garnered over $648 million in inflows.
Despite the overall positive sentiment, there were investors who wagered on declining prices, resulting in $5.8 million inflows into short Bitcoin products. Additionally, altcoin ETPs based on assets such as Avalanche, Chainlink, and Polygon continued to witness steady inflows, each averaging around $1 million per week this year.
However, the Solana ETP experienced outflows totaling $1.6 million, which Butterfill attributed to the recent network outage in early February, adversely affecting investor sentiment towards the asset.
