Crypto ETPs Reach $67B AUM in Bull Run

The surge in assets under management (AUM) for Crypto ETPs at CoinShares reached a level unseen since the 2021 bull market peak.

A record week of inflows for exchange-traded products (ETPs) derived from cryptocurrencies has propelled CoinShares total assets under management (AUM) to levels unseen since the peak of the 2021 bull market.

In a report published on February 19, CoinShares research director James Butterfill reported that the total assets under management (AUM) of crypto investment products had reached $67 billion, “marking the highest level since December 2021.”

Butterfill attributed the increase in AUM to year-to-date inflows totaling $5.2 billion and strong price action in the cryptocurrency market. It comes at a time when cryptocurrency exchange-traded funds (ETFs) registered a record $2.45 billion inflows during the week that ended on February 16.

Butterfill attributed 99% of the inflows to United States-listed crypto ETPs, which included the ten approved spot Bitcoin ETFs. These ETFs had a “significant acceleration of net inflows.”

During the previous week, BlackRock and Fidelity’s ETFs received approximately $2.3 billion in inflows during the previous week, with BlackRock’s ETFs receiving $1.6 billion and Fidelity’s ETFs receiving over $648 million.

Butterfill asserted that “at the same time that outflows from incumbent players have significantly decreased.” Grayscale’s products experienced weekly outflows of $623 million, the Bitcoin fund provided by the issuer has seen almost $7 billion leave the fund since January 1, when it converted to an exchange-traded fund (ETF).

Furthermore, Bitcoin gained more than 4% from on Monday, February 12 and on Friday, February 16.

It reached a high of over $52,000 at the end of the week, a level not seen since December 2021. Despite this, some investors are betting that the price will drop and they have added five and a half million dollars to short-Bitcoin instruments.

Ether goods also had relatively moderate inflows of $21 million and they concluded the week at approximately $2,800, which is the highest they have been since May 2022.

Butterfill observed that alternative Crypto ETPs based on Avalanche, Chainlink, and Polygon stood out for “having consistently seen weekly inflows this year.”

Each of these ETPs saw approximately one million dollars in inflows. Butterfull attributed the $1.6 million in outflows for Solana goods to “impacted sentiment” due to the recent disruption experienced by the network at the beginning of February.