Crypto ETPs reach $28B AUM in February despite market fluctuations: Report

Key Takeaways

• ETPs with cryptocurrencies as underlying assets saw a 1% increase in AUM during February, reaching $28 billion, according to research by Fineqia International.
• The price of Bitcoin rose by 3% to $23,500 on March 1, compared to about $22,800 on February 1, while the AUM of ETPs holding BTC rose by 1% to $19.2 billion from $19 billion. During January, Ethereum (ETH) rose by 4.5% to nearly $1,650 from about $1,550.
• Year-on-year data revealed a 45% drop in price for both BTC and ETH over the past 12 months, while year-to-date price levels reflected a 42% price increase for BTC and a 36% rise in value for ETH.

Despite the ongoing fluctuations in the cryptocurrency market, Exchange Traded Products (ETPs) with cryptocurrencies as underlying assets have continued to see growth, according to research by Fineqia International. Fineqia found that Crypto ETPs reached a total of $28 billion in assets under management (AUM) in February. This marks a 1% increase from the previous month, indicating a level of stability and resilience in the market.

At the same time, the cryptocurrency market value increased by 1.5% to $1.07 trillion. The number of ETPs listed dropped to 155 from 164, with Bitpanda halting trading of its five ETPs and ETC Group closing four of its ETPs. The ETPs include exchange-traded funds and exchange-traded notes.

ETPs representing alternative coins remained stable, and those with a basket of cryptocurrencies fell by 1%.

The price of bitcoin (BTC) rose by 3% to $23,500 on March 1, compared with about $22,800 on February 1, while the AUM of ETPs holding BTC rose by 1% to $19.2 billion from $19 billion.

During January, Ethereum (ETH) rose by 4.5% to nearly $1,650 from about $1,550. The AUM of Ethereum denominated ETPs followed with a 2.5% increase to $6.85 billion on February 1 from $6.7 billion on January 1.

Year-on-year data revealed a 45% drop in price for both BTC and ETH over the past 12 months, while year-to-date price levels reflected a 42% price increase for BTC and a 36% rise in value for ETH.

The overall value of cryptocurrencies remained over the $1 trillion mark, ending at $1.07 trillion in February, slightly up from $1.05 trillion in January. The year-on-year data showed a 37% decrease in the total crypto market cap compared with the $1.7 trillion total value observed on March 1, 2022.

Fineqia’s CEO, Bundeep Singh Rangar, said: “Following a successful rebound in January, ETPs AUM and underlying prices demonstrated stability throughout February. Last year’s turmoil has resulted in a mini shakeout early this year as larger ETPs attract more investor attention.”

All the cryptocurrency prices are sourced from CoinMarketCap. The data was compiled from publicly available sources, including 21Shares, Grayscale Investment, VanEck Associates, Morningstar, and TrackInSight SAS by Fineqia’s research department.

Read Also: The Digital Dilemma for Crypto: How to Unleash the Blocks in the Chains

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