Crypto ETP Assets Soar as Investors Flock to Bitcoin and Altcoins

Fineqia International Inc's senior associate Matteo Greco points to increased investor demand for Bitcoin, Ethereum, and altcoin exchange-traded products (ETPs) as a key driver of their August rebound. The crypto ETP assets under management jumped 27% in August, outperforming the wider crypto market's 21% rise.

The main change was that with this recent price action, investors stopped waiting for confirmation and started increasing purchase volume, Greco said. He highlighted US spot Bitcoin ETFs, which attracted around $1.6 billion of inflows over four days in the final week of August.

Ethereum ETPs rose 43% against a 32% increase in Ethereum itself, characterized by Greco as a 'catch-up trade' following weaker performance in previous months. Altcoin ETPs also gained more than 40%, though Greco cautioned that it's too early to call this a major institutional shift due to the small asset base.