CoinShares has reported a record-breaking week for inflows into crypto-derived exchange-traded products (ETPs), resulting in a surge in combined assets under management (AUM) to levels not seen since the peak of the bull market in 2021. The AUM for crypto investment products now stands at $67 billion, marking the highest level since December 2021. According to CoinShares research head James Butterfill, this increase in AUM is primarily due to inflows of $5.2 billion year-to-date and positive price action in the crypto market.
In the week ending February 16, crypto ETPs recorded inflows of $2.45 billion, with 99% of these inflows coming from US-listed crypto ETPs, including the 10 approved spot Bitcoin ETFs. Butterfill highlighted a significant acceleration of net inflows for these ETFs. BlackRock and Fidelity’s ETFs attracted nearly $2.3 billion of last week’s inflows, with BlackRock receiving $1.6 billion and Fidelity receiving over $648 million.
At the same time, there has been a dramatic decrease in outflows from established players. Grayscale’s products experienced $623 million in weekly outflows, with the Bitcoin fund losing over $7 billion since January 1, when it transitioned into an ETF.
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 a price of over $52,000, which is the highest since December 2021.
However, some investors are betting on a price drop and have added $5.8 million of inflows to short-Bitcoin products. Ether products saw relatively minor inflows of $21 million and ended the week at around $2,800, reaching a high last seen in May 2022.
Butterfill noted that Altcoin ETPs based on Avalanche, Chainlink, and Polygon have consistently seen weekly inflows this year, each receiving around $1 million inflows. Solana products experienced outflows of $1.6 million, which Butterfill attributed to the negative sentiment caused by the network’s recent downtime in early February.