Global crypto ETP market sees sharp February drawdown – Fineqia

Assets nether absorption (AUM) successful planetary integer plus exchange-traded products (ETPs) dropped sharply successful February, marking the steepest monthly diminution successful respective years arsenic falling cryptocurrency prices weighed connected the sector, according to a study by Fineqia International Inc (CSE:FNQ).

Total crypto ETP AUM fell 21.4% to $122.5 cardinal astatine the extremity of February from $155.8 cardinal successful January, the steadfast said successful its February integer plus ETP report. The driblet pushed assets to their lowest level since mid-2024 and represented the largest monthly percent diminution since mid-2022.

The autumn successful ETP assets came arsenic the broader crypto marketplace weakened. Total integer plus marketplace capitalization declined 13.2% during the period to $2.38 trillion from $2.74 trillion.

The ETP AUM contraction materially exceeded the marketplace decline, reflecting the marketplace sell-off during the last play of January, the interaction of which was afloat absorbed successful February’s flows, noted Matteo Greco, elder expert astatine Fineqia.

Despite the crisp driblet successful assets, Greco noted that capitalist withdrawals played a comparatively tiny relation successful the decline.

“In implicit terms, nett outflows remained minimal compared to the terms driblet and correspond a tiny operator to the AUM decrease,” helium said, adding that this “reinforces ETP investors’ little terms sensitivity and contained outflows adjacent during important marketplace corrections.”

Bitcoin-backed products accounted for the bulk of assets successful the assemblage but besides posted a important diminution during the month. AUM successful Bitcoin ETPs fell 20.2% to $99.7 billion, dropping beneath the $100 cardinal threshold for the archetypal clip since mid-2024.

The diminution came arsenic the terms of Bitcoin fell 13.9% to $67,667 from $78,626 successful January.

Greco said the autumn beneath $100 cardinal was notable fixed that Bitcoin ETPs had maintained assets supra that level since the aboriginal months pursuing the motorboat of U.S. spot Bitcoin exchange-traded funds successful 2024.

Even so, helium pointed to signs of stabilizing request precocious successful the month.

“Encouragingly, the last week of February recorded beardown inflows, reducing the month’s nett outflows to minimal levels,” Greco said.

Products linked to Ethereum saw the steepest declines among the large segments. Ethereum ETP AUM fell 27.9% to $14.3 cardinal from $19.8 cardinal arsenic the cryptocurrency’s terms dropped 19.6% to $1,965, slipping beneath $2,000 for the archetypal clip since aboriginal 2024.

Ethereum’s stock of the crypto ETP marketplace fell to 11.7% from 12.7% successful January, reflecting the token’s weaker show comparative to Bitcoin.

Other segments of the marketplace besides declined broadly successful enactment with the wider selloff. Altcoin ETP assets dropped 22.7% to $5.4 billion, portion handbasket ETPs fell 23.2% to $3.1 billion.