Fineqia International's Matteo Greco on crypto ETP outflows: market reset or bear phase?

Fineqia International Inc (CSE:FNQ) senior associate Matteo Greco talked with Proactive's Stephen Gunnion about the company’s February report on crypto exchange-traded products (ETPs), which revealed a sharp decline in assets under management during the month amid broader weakness in the digital asset market. Greco explained that crypto ETP AUM dropped around 21% in February, marking the steepest monthly decline since mid-2022. However, he stressed that the drop was largely driven by market price movements rather than significant investor withdrawals. A key factor was the timing mismatch between crypto markets and ETP trading hours, as a major sell-off occurred during the final weekend of January while ETP markets were closed. Greco said: “February was a little bit of a catch-up month from an ETP point of view because there was a strong sell-off happening in the last weekend of January.” The report shows that while total AUM has fallen more than 25% year-to-date, actual investor outflows remained limited. In fact, the final week of February recorded more than $1 billion in net inflows, mainly into Bitcoin ETPs. Greco also noted that Bitcoin ETP assets falling below the $100 billion mark could carry psychological significance for institutional investors, though recent price rebounds and inflows suggest demand remains resilient. Ethereum ETPs experienced the largest decline in February, reflecting broader weakness in altcoins despite strong institutional demand since the launch of spot Ethereum ETFs in July 2024. Looking ahead, Greco believes the next few weeks will be crucial in determining whether the recent downturn represents a temporary correction or the early stages of a bear market. For more videos like this, visit the Proactive YouTube channel, give this video a like, subscribe to the channel and enable notifications so you never miss future updates. #CryptoETP #BitcoinETP #EthereumETF #CryptoMarkets #InstitutionalCrypto #DigitalAssets #CryptoInvesting #Bitcoin #Ethereum #Fineqia #CryptoAnalysis #CryptoNews