Assets under management (AUM) in global digital asset exchange-traded products (ETPs) dropped sharply in February, marking the steepest monthly decline in several years as falling cryptocurrency prices weighed on the sector, according to a report by Fineqia International Inc (CSE:FNQ).
Total crypto ETP AUM fell 21.4% to $122.5 billion at the end of February from $155.8 billion in January, the firm said in its February digital asset ETP report. The drop pushed assets to their lowest level since mid-2024 and represented the largest monthly percentage decline since mid-2022.
The fall in ETP assets came as the broader crypto market weakened. Total digital asset market capitalization declined 13.2% during the month to $2.38 trillion from $2.74 trillion.
The ETP AUM contraction materially exceeded the market decline, reflecting the market sell-off during the final weekend of January, the impact of which was fully absorbed in February’s flows, noted Matteo Greco, senior analyst at Fineqia.
Despite the sharp drop in assets, Greco noted that investor withdrawals played a relatively small role in the decline.
“In absolute terms, net outflows remained minimal compared to the price drop and represent a small driver to the AUM decrease,” he said, adding that this “reinforces ETP investors’ lower price sensitivity and contained outflows even during significant market corrections.”
Bitcoin-backed products accounted for the majority of assets in the sector but also posted a substantial decline during the month. AUM in Bitcoin ETPs fell 20.2% to $99.7 billion, dropping below the $100 billion threshold for the first time since mid-2024.
The decline came as the price of Bitcoin fell 13.9% to $67,667 from $78,626 in January.
Greco said the fall below $100 billion was notable given that Bitcoin ETPs had maintained assets above that level since the early months following the launch of U.S. spot Bitcoin exchange-traded funds in 2024.
Even so, he pointed to signs of stabilizing demand late in the month.
“Encouragingly, the final week of February recorded strong inflows, reducing the month’s net outflows to minimal levels,” Greco said.
Products linked to Ethereum saw the steepest declines among the major segments. Ethereum ETP AUM fell 27.9% to $14.3 billion from $19.8 billion as the cryptocurrency’s price dropped 19.6% to $1,965, slipping below $2,000 for the first time since early 2024.
Ethereum’s share of the crypto ETP market fell to 11.7% from 12.7% in January, reflecting the token’s weaker performance relative to Bitcoin.
Other segments of the market also declined broadly in line with the wider selloff. Altcoin ETP assets dropped 22.7% to $5.4 billion, while basket ETPs fell 23.2% to $3.1 billion.
“The broadly similar magnitude of declines across both segments … suggests that the February drawdown was largely indiscriminate, reflecting broad-based risk-off sentiment rather than asset-specific selling,” Greco said.
Year-to-date, total crypto ETP AUM has fallen 25.4%, compared with a 21.9% decline in the overall digital asset market, according to the report.
Still, product development in the sector has continued. The number of listed crypto ETPs stood at 317 globally at the end of February, down slightly from 318 in January but higher than the 312 products listed at the end of 2025.
Greco said the February data may signal a shift in market dynamics that warrants close monitoring.
“The February data suggests a shift in market structure,” he said, adding that whether the decline represents a temporary adjustment or a broader change in demand will become clearer in the coming months as flows develop.