Bitcoin ETPs now account for over 7% of BTC’s market capitalization

Bitcoin exchange-traded products (ETPs) now represent more than 7% of Bitcoin’s total market capitalization, according to recent data. CoinShares, in its latest report from February 10, revealed that crypto investment products saw an influx of $1.3 billion in the past week, marking the fifth consecutive week of inflows. This brings the total inflows for the year to $7.3 billion. Bitcoin alone accounted for $407 million of this total, with its ETPs now holding 7.1% of its market cap.

Ethereum, on the other hand, saw a more significant surge, attracting $793 million in inflows, despite its price dipping to around $2,100. This was attributed to “significant buying-on-weakness,” according to CoinShares’ head of research, James Butterfill. He also noted that while U.S. trade tensions were weighing on traditional markets, Bitcoin had already priced in fears over the weekend, with equities following suit.

The inflows were widespread across regions, with the U.S. leading the way with $1 billion in allocations. Germany, Switzerland, and Canada also contributed, with $61 million, $54 million, and $37 million, respectively. Other altcoins such as XRP and Solana received $21 million and $11 million in inflows, respectively.

Despite the positive inflows, total assets under management (AUM) in crypto ETPs have decreased to $163 billion from a January peak of $181 billion. This decline is largely attributed to recent price declines in the crypto market. However, trading volumes have remained steady at $20 billion for the week, indicating continued interest and activity in the space.

The sustained inflows into Bitcoin and Ethereum-based investment products, particularly as Bitcoin ETPs now hold a notable portion of Bitcoin’s market cap, demonstrate increasing institutional and retail investor interest in the digital asset market despite broader price fluctuations.