Following the recent stock market crash, crypto ETF products proved to be crucial in steering the course of the overall market recovery. After a sharp drop in total assets under management (AuM) to $75 billion following the August 5 carnage, the total surged significantly to $85 billion, effectively recouping more than $20 billion lost during the correction.

Crypto ETF products track trading activity

The Latest CoinShares report shows the impact of these crypto ETF products, with trading activity surging to $19 billion this week, surpassing the usual weekly average of $14 billion seen so far this year.

The report also highlighted an unusual trend of universal inflows across all regions, indicating unanimous positive sentiment towards crypto assets following the recent price correction.

Notable contributions came from regions such as the United States, Switzerland, Brazil and Canada, with inflows of $89 million, $20 million, $19 million and $12.6 million respectively in the past week alone.

Ethereum in particular seemed to thrive amid the market turmoil, attracting a substantial $155 million in inflows last week. The surge pushed inflows so far this year to $862 million, the highest inflow volume seen since 2021.

According to the report, the surge in Ethereum inflows was largely attributed to the recent launch of US spot-based Ethereum ETFs, underscoring the growing interest in alternative crypto ETF products beyond Bitcoin and the index fund market that was approved in the same country in January.

Investors shift focus to long positions

While Bitcoin initially was a to flow out At the start of the week, a notable turnaround took place in the last few days with significant inflows of $13 million for the week.

Conversely, short crypto ETF products based on BTC saw their largest outflows since May 2023, totaling $16 million (23% of AuM). This trend led to a notable reduction in AuM for short positionsthe lowest level since the beginning of the year.

Further insights from SoSo Value facts reveals that spot crypto ETFs recorded a net outflow of $169 million in the Bitcoin market. Among the notable figures, Grayscale Bitcoin Trust ETF (GBTC) saw a weekly outflow of $392 million, while BlackRock ETF IBIT saw a notable inflow of $220 million.

At the time of writing, the largest cryptocurrency in the market, Bitcoin, has fallen by more than 2% in the past 24 hours to current levels trade price from $58,640. However, after recovering from last week’s crash towards $49,000, BTC is still up 18% over the previous seven days.

Ethereum, on the other hand, is up 1.1% over the past 24 hours, with the token trading at $2,660. Like Bitcoin, ETH has seen significant gains of almost 22% over the past seven days since recovering from an eight-month low of $2,112 last Monday.

Main image of DALL-E, chart from TradingView.com