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A surge in inflows into crypto-derived exchange-traded products (ETPs) during the past week has propelled their combined assets under management (AUM) to levels reminiscent of the peak seen during the last bull market in 2021, as reported by CoinShares.
Remarkable Growth in Assets Under Management
The AUM of crypto investment products has surged to $67 billion, marking the highest level recorded since December 2021. Butterfill attributes this rise in AUM to year-to-date inflows totaling $5.2 billion and the positive performance of the crypto market.
The record-breaking trend continued as crypto ETPs recorded a staggering $2.45 billion in inflows during the week ending on February 16.
Major Players Witness Significant Inflows
Leading financial institutions such as BlackRock and Fidelity's ETFs were among the recipients of these substantial inflows. BlackRock's ETFs attracted approximately $1.6 billion in inflows, while Fidelity saw inflows exceeding $648 million the previous week.
According to Coin Telegraph, Butterfill also noted a noteworthy shift in the outflows from incumbent players, with dramatic decreases observed in outflows. Grayscale's products, for instance, experienced weekly outflows amounting to $623 million. The issuer's Bitcoin fund alone has witnessed over $7 billion exiting the fund since January 1, particularly following its conversion into an ETF.
Positive Market Performance
In tandem with the influx of investments, Bitcoin exhibited a gain of over 4% between Monday, February 12, and Friday, February 16, according to data from Cointelegraph Markets Pro. The week concluded with Bitcoin surpassing the $52,000 mark, reaching highs not witnessed since December 2021.
Varied Investor Sentiments
Despite the positive market momentum, some investors remain bearish on Bitcoin's price trajectory, evidenced by the $5.8 million inflows into short-Bitcoin products.
According to Coin Shares, certain investors are hedging their positions, anticipating a potential decline in Bitcoin's price.
The influx of investments into crypto products underscores the growing mainstream acceptance and interest in digital assets as institutional and retail investors seek exposure to this burgeoning asset class amidst ongoing market volatility and economic uncertainty.
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