Bitrabo Editorial
Following a recent market crash, crypto ETF products played a crucial role in steering the market towards recovery. The total assets under management (AuM) took a hit initially, dropping to $75 billion after the August 5 turmoil. However, the market has rebounded impressively, reaching $85 billion and recovering over $20 billion lost during the correction.
Increased Trading Activity in Crypto ETF Products
According to the latest report from CoinShares, trading activity in crypto ETF products surged to $19 billion for the week, surpassing the average weekly volume of $14 billion seen so far this year. The report also noted a rare trend of global inflows across all regions, indicating a widespread positive sentiment towards crypto assets post the recent price correction.
Notable contributions came from various regions such as the United States, Switzerland, Brazil, and Canada, with significant inflows recorded in the past week alone.
Ethereum stood out amidst market turbulence, attracting $155 million in inflows last week, taking its year-to-date inflows to $862 million, the highest volume seen since 2021. The surge in Ethereum inflows was largely driven by the introduction of US spot-based Ethereum ETFs, indicating rising interest in alternative crypto ETF products beyond Bitcoin.
Shift Towards Long Positions by Investors
While Bitcoin initially saw outflows at the start of the week, a reversal occurred in the final days with significant inflows totaling $13 million for the week. Conversely, short crypto ETF products based on BTC faced substantial outflows, leading to a reduction in AuM for short positions to the lowest level since the beginning of the year.
Additional data from SoSo Value highlighted that spot crypto ETFs experienced a net outflow of $169 million in the Bitcoin market. Notable figures included the Grayscale Bitcoin Trust ETF (GBTC) with a weekly outflow of $392 million and BlackRock ETF IBIT with a significant inflow of $220 million.
Bitcoin, the largest cryptocurrency, has dropped over 2% in the last 24 hours, trading at $58,640. Despite the drop, BTC is up 18% over the past week from the lows experienced during the recent crash. Ethereum has seen gains of 1.1% in the last 24 hours, trading at $2,660 and recovering significantly from an 8-month low of $2,112 last week.
Image source: DALL-E, chart from TradingView.com