Crypto investment products reach the highest AUM

In a surge driven by a record week of inflows for crypto-derived exchange-traded products (ETPs), the combined assets under management (AUM) for crypto investment products have reached levels unseen since the peak of the last bull market in 2021, according to CoinShares.

Record inflows propel AUM to $67 billion

As per a report by CoinShares’ research head, James Butterfill, crypto investment products’ AUM now stands at $67 billion, marking the highest level since December 2021. This rise is attributed to year-to-date inflows of $5.2 billion and positive price action in the crypto market.

Record week of inflows driven by US-listed crypto ETPs

Crypto ETPs witnessed a record $2.45 billion inflows in the week ending February 16, with 99% of these inflows attributed to United States-listed crypto ETPs. Notably, the surge in inflows was significantly fueled by the 10 approved spot Bitcoin ETFs, which saw a remarkable acceleration of net inflows, according to Butterfill.

BlackRock and Fidelity’s ETFs played a pivotal role in last week’s inflows, with nearly $2.3 billion pouring into these products. BlackRock’s ETFs saw inflows of $1.6 billion, while Fidelity’s ETFs attracted over $648 million in inflows.

Simultaneously, outflows from incumbent players have witnessed a dramatic decrease. Grayscale’s products, for instance, experienced $623 million in weekly outflows, with its Bitcoin fund alone losing over $7 billion since January 1 after transitioning to an ETF structure.

Price action and investor sentiment

Bitcoin’s price surged 4% between February 12 and February 16, ending the week at over $52,000, a level not seen since December 2021. Despite this positive price action, some investors are betting on a price decline, evidenced by the $5.8 million inflows into short-Bitcoin products. Ether products also saw minor inflows of $21 million, closing the week at around $2,800.

Altcoin ETPs based on Avalanche (AVAX), Chainlink (LINK), and Polygon (MATIC) have consistently seen weekly inflows this year, each attracting around $1 million in inflows. These altcoins have gained traction among investors seeking exposure beyond Bitcoin and Ether.

Conversely, Solana products experienced $1.6 million in outflows, attributed to impacted sentiment following the network’s recent downtime in early February.