In the wake of the recent market crash, crypto ETF products have proven to be key in steering the course of the overall market recovery. After a keen decline in total assets under management (AuM) to $75 billion following the August 5 massacre, the total has rebounded significantly to $85 billion, effectively recouping over $20 billion lost during the correction.
Crypto ETF products record trading activity
Latest CoinShares news report shows the impact of these crypto-ETF products, with trading activity rising to $19 billion for the week, exceeding the $14 billion weekly average seen this year.
The report also highlighted an unusual trend of widespread inflows across all regions, indicating a unanimous positive sentiment towards the crypto asset following the recent price correction.
The largest contributions came from regions such as the United States, Switzerland, Brazil and Canada, where inflows over the past week amounted to USD 89 million, USD 20 million, USD 19 million and USD 12.6 million, respectively.
Ethereum, in particular, seemed to thrive amid the market turbulence, attracting a significant $155 million in inflows last week. That growth pushed its inflows this year to $862 million, the highest inflow volume seen since 2021.
According to the report, the escalate in Ethereum inflows can be largely attributed to the recent launch of Ethereum spot ETFs in the US, which highlights the growing interest in alternative cryptocurrency ETF products beyond Bitcoin and its index fund market approved in the same country in January.
Investors are shifting their focus to long positions
Although Bitcoin initially experienced drains At the beginning of the week, there was a significant turnaround in recent days when a significant inflow of funds was recorded amounting to $13 million in a week.
On the other hand, BTC-based crypto ETF products saw the largest outflows since May 2023, totaling $16 million (23% of AuM). This trend led to a significant reduction in AuM for brief positionsreaching its lowest level since the beginning of the year.
More insights from SoSo Value data reveals that spot crypto ETFs saw net outflows of $169 million in the Bitcoin market. Among the standout numbers, the Grayscale Bitcoin Trust ETF (GBTC) saw a weekly outflow of $392 million, while the BlackRock ETF IBIT saw a significant inflow of $220 million.
At the time of writing, the largest cryptocurrency on the market, Bitcoin, has fallen by more than 2% in the last 24 hours to its current level Trade price $58,640. However, after recouping losses from last week’s crash to reach $49,000, BTC is still up 18% over the past seven days.
On the other hand, Ethereum is up 1.1% in the past 24 hours, with the token trading at $2,660. Like Bitcoin, ETH has seen significant gains of almost 22% in the past seven days since rebounding from an 8-month low of $2,112 last Monday.
Featured image from DALL-E, chart from TradingView.com
