A monthly column on the global crypto markets and ETF/ETP flows, brought to you by CoinDesk Indices, Trackinsight and ETF Express.
Joshua de Vos, Research Lead, CoinDesk, writes that February extended the digital asset downturn for a second consecutive month, with global crypto ETP outflows accelerating sharply as price declines deepened.
According to TrackInsight data, global digital asset investment products recorded USD420.5 million in net outflows as total assets under management fell to USD125.1 billion, with US-listed vehicles accounting for the majority of redemptions while European domiciles moved meaningfully in the opposite direction.
The CoinDesk 20 Index (CD20), which captures a diversified cross-section of the top 20 digital assets, fell 16.82 per cent in February, extending January’s 13.32 per cent drawdown. The more concentrated CoinDesk 5 Index (CD5) declined 16.05 per cent, with the narrowing gap between the two indices suggesting broad-based pressure, and large-cap assets offering diminishing relative shelter from the wider decline.
Asset flows
According to data from TrackInsight, outflows remained concentrated in bitcoin- and Ether-linked instruments globally, while some altcoins posted net inflows for the second consecutive month, a consistency that increasingly points to structural shifts of interest by institutional investors.
- Bitcoin: BTC-linked products recorded net outflows of USD230.2 million, while total category AUM stood at USD100.3 billion, reinforcing bitcoin’s continued dominance of the global crypto ETP market by asset size.
- Ethereum: Ether-linked products experienced net outflows of USD237.1 million, ending February with USD14.8 billion in aggregate AUM. ETH outflows exceeded BTC outflows on a flow-relative-to-AUM basis for the second consecutive month.
- Multi-asset: Diversified baskets recorded net outflows of USD29.9 million, with total AUM of USD2.14 billion.
- Altcoins: XRP-linked products attracted USD105.8 million in net inflows (AUM: USD2.51 billion), Solana drew USD90.4 million (AUM: USD2.29 billion), and Sui-linked products added USD47 million (AUM: USD154 million), emerging as one of the fastest-growing altcoin categories within the global ETP landscape.
Flows by geography
- Americas: Net outflows of approximately USD839 million, driven by US-listed products (USD979.1 million in redemptions) and partially offset by Canada (USD139.3 million in inflows) and Cayman Islands-domiciled vehicles (USD20.9 million). US-domiciled ETFs maintained USD105.4 billion in AUM, representing over 84 per cent of global market share.
- Europe: Net inflows of approximately USD389 million, a meaningful counterweight to US-driven outflows not seen at this scale in prior months. Switzerland led at USD204.5 million (AUM: USD3.58 billion), followed by Jersey at USD156.6 million (AUM: USD4.05 billion) and Germany at USD20.0 million.
- APAC: Net inflows of approximately USD31 million, led by Australia. Regional participation remained modest but stable.
Flows by currency
- USD: USD-denominated products recorded USD593.1 million in net outflows, while maintaining USD117.9 billion in AUM, the dominant share of global crypto ETP assets.
- CAD: CAD-denominated products recorded USD136.0 million in net inflows, with a total AUM of USD3.94 billion.
- EUR / SEK / AUD: EUR-denominated products recorded USD5.4 million in inflows (AUM: USD1.26 billion), SEK added USD12.2 million (AUM: USD1.46 billion), and AUD added USD16.5 million (AUM: USD576 million).
Largest ETF gainers (by February net flows)
- Volatility Shares 2x Ether ETF (ETHU): +USD179.5 million; USD706.6 million AUM
- Volatility Shares 2x Bitcoin Strategy ETF (BITX): +USD166.9 million; USD905.3 million AUM
- Grayscale Bitcoin Mini Trust ETF (BTC): +USD163.8 million; USD3.49 billion AUM
- iShares Bitcoin ETP (IB1T): +USD148.3 million; USD780 million AUM
- WisdomTree Physical Bitcoin (WBIT): +USD90.9 million; USD1.20 billion AUM
- Grayscale Ethereum Mini Trust ETF (ETH): +USD83.2 million; USD1.70 billion AUM
- CoinShares Physical Bitcoin ETP (CBTC): +USD57.3 million; USD1.30 billion AUM
- Fidelity Advantage Bitcoin ETF (FBTC): +USD55.4 million; USD813 million AUM
- Bitwise Solana Staking ETF (BSOL): +USD53.6 million; USD557 million AUM
Outlook
- February’s headline outflow figure masks a more nuanced picture. US-listed products shed USD979.1 million, but European and Canadian markets collectively absorbed over USD500 million, a geographic divergence that may reflect non-US allocators treating the drawdown as an entry opportunity. Leveraged funds dominated the gainers list, signalling active tactical positioning, while altcoin products extended their run of consecutive monthly inflows.
- Near-term flow recovery will remain closely tied to bitcoin’s price trajectory and broader macro conditions. However, the structural resilience of European markets, the growing breadth of the altcoin ETP product set, and the continued depth of US market liquidity position the global ecosystem for recovery when risk appetite improves.
Data sources:
TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services
CoinDesk (Bitcoin, CD20, CD80, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price
Disclaimer: TrackInsight considers flows from an ETF’s perspective, treating the fund’s first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.
