Cryptocurrency exchange-traded products (ETPs) are making headlines again, witnessing an unexpected resurgence in investor interest. Following a significant five-week outflow, the latest report indicates a positive shift with global crypto ETPs attracting $226 million in inflows over the last trading week, as reported by CoinShares on March 31. This is a noteworthy development after the previous week’s $644 million inflow, signaling a potential reversal in market sentiment.
However, despite this two-week streak of inflows, the total assets under management (AUM) have taken a hit, dropping below $134 million as of March 28. CoinShares’ head of research, James Butterfill, highlights the cautious behavior of investors amid rising core Personal Consumption Expenditures in the United States.
Bitcoin’s Dominance in Inflows
Bitcoin (BTC) continues to lead the charge, accounting for the majority of the recent inflows at $195 million, while short-BTC investment products saw outflows for the fourth consecutive week totaling $2.5 million. In a notable shift, altcoins also made a comeback with a collective inflow of $33 million, marking their first week of positive movement after four weeks of significant outflows totaling $1.7 billion.
Focusing on individual altcoins, Ether (ETH) demonstrated resilience with inflows of $14.5 million. Other notable performers included Solana (SOL) at $7.8 million, followed by XRP at $4.8 million and Sui (SUI) with $4 million inflows. These trends reflect a diversified interest from investors in the evolving crypto landscape.
Challenges Ahead: AUM Declines Amid Pricing Issues
Despite the inflows, the overall picture is somewhat bleak. Crypto ETP AUM has not seen a corresponding increase, declining 5.7% from 142 billion to 133.9 billion since March 10, marking the lowest level of assets in 2025. CoinShares attributes this decline primarily to the ongoing slump in cryptocurrency prices, which have adversely affected market confidence.
As of now, Bitcoin’s total assets under management have fallen to $114 billion, the lowest since shortly after the US elections. This comes at a time when Bitcoin’s price has decreased by 13.6% since January 1, 2025, alongside a nearly 20% reduction in total market capitalization. Such price movements indicate the volatility and risks still present in the cryptocurrency market.
In conclusion, while the inflows into cryptocurrency ETPs signal a cautious optimism among investors, the persistent decrease in total assets raises important questions about the sustainability of this trend in the face of ongoing valuation challenges. Stakeholders will need to closely monitor these developments to navigate the complexities of the cryptocurrency market in the upcoming weeks.
