Crypto ETP Market Remains Resilient Despite Ongoing Crypto Downturn
Fineqia International Inc's Matteo Greco says that despite tough crypto conditions, outflow pressure remains manageable in the exchange-traded product (ETP) market. The contrast between strong traditional markets and struggling cryptocurrencies is stark: while the S&P 500 reaches new highs, Bitcoin remains well below its record.
Greco argues that recent drops in assets under management are largely driven by falling asset prices, rather than investors exiting. This means that outflows have been relatively minor. He notes that strong inflows in 2024-2025 have helped cushion the blow, although momentum is still uncertain.
The Ethereum ETP market has seen a recent rebound, with some optimism surrounding its growth prospects. However, Greco cautions that momentum hinges on the wider crypto market, and warns against being overly optimistic about short-term gains. As the digital asset market matures, basket products may see rising demand, according to Greco.
Looking ahead, sustained positive price action over two or three consecutive months could be key to bringing investors back with greater strength. This would likely require a broader recovery in the crypto market.