After the recent market crash, crypto ETF products played a key role in guiding the overall market recovery. After plummeting to $75 billion in total assets under management (AuM) following the carnage on August 5, they have recovered significantly to $85 billion in total assets, effectively recovering more than $20 billion lost during the correction.
Crypto ETF Products Record Trading Activity
Latest news from CoinShares report Here’s a graph showing the impact of these cryptocurrency ETF products. Trading activity has surged to $19 billion this week, surpassing the weekly average of $14 billion seen so far this year.
The report also highlighted the unusual trend of universal inflows across all regions, indicating recent positive sentiment towards crypto assets. Price Modification.
Notable contributions came from the United States, Switzerland, Brazil and Canada, which brought in $89 million, $20 million, $19 million and $12.6 million respectively last week.
Ethereum in particular appears to be thriving amid the market turmoil, attracting a significant inflow of $155 million last week. This surge brings inflows this year to a record high of $862 million. inflow It appeared from 2021.
According to the report, the surge in Ethereum inflows was largely driven by the recent launch of a spot-based Ethereum ETF in the United States, highlighting growing interest in alternative cryptocurrency ETF products outside of the Bitcoin and index fund markets that were approved in the United States in January.
Investors focus on long positions
Bitcoin was initially outflow Early in the week, there was a notable turnaround in the last few days, with significant inflows reaching $13 million for the week.
Conversely, BTC-based short-term cryptocurrency ETF products have seen their largest outflows since May 2023, totaling $16 million (23% of AUM). This trend has led to a significant decline in AUM. Short term positionIt marked the lowest level since the beginning of the year.
Additional Insights from SoSo Value data Spot cryptocurrency ETFs have reported net outflows of $169 million from the Bitcoin market. Among the notable figures, the Grayscale Bitcoin Trust ETF (GBTC) saw outflows of $392 million per week, while the BlackRock ETF IBIT saw a notable inflow of $220 million.
At the time of writing, Bitcoin, the largest cryptocurrency on the market, has fallen more than 2% in the past 24 hours and is currently trading at Transaction price $58,640. However, after recovering from last week’s crash and recovering to $49,000, BTC is still up 18% over the past seven days.
Ethereum, on the other hand, is up 1.1% over the last 24 hours, with the token trading at $2,660. Like Bitcoin, ETH has seen a significant gain of around 22% over the past seven days since recovering from its eight-month low of $2,112 last Monday.
Featured image for DALL-E, charts from TradingView.com