Institutional exposure to BTC products attained new heights in Feb ―Arcane Report

Key Takeaways

• European ETFs see the third consecutive month of net outflows.
• Canadian ETFs experience the strongest monthly net inflow since March 2021.

LAGOS (CoinChapter.com) — The month of February in the cryptocurrency space was dominated by a rollercoaster of events. Bitcoin surged by over 12% from $38,483.13 at the beginning to $43,193.23 by the end.

Bitcoin performance by extension impacted its exchange-traded products (ETP). According to Arcane Research’s latest report, the global Bitcoin exposure of Bitcoin-based ETPs hit a new all-time high — of about 190,000 BTC — on February 28.

The report disclosed that Bitcoin ETPs attracted about 5,839 BTC inflow in February.

In a perfect scenario, the outstanding growth of exchange-traded BTC funds indicates that institutional investors have been returning to the crypto markets. This according to many experts has been credited to the ongoing Russian-Ukraine crisis, U.S. inflation, among other issues.

Furthermore, the Arcane report revealed that Bitcoin ETPs are expanding remarkably. Currently, Bitcoin ETPs are live in the European Union, the United States, Canada, and Brazil. Also, there are ongoing operations to launch BTC ETFs in Australia and India.

E.U. BTC ETPs Currently Dominate The ETP Market

Meanwhile, the E.U. BTC ETPs currently dominate the ETP market as it holds about 93,618 BTC. However, the European ETP market has been less profitable as it recorded its third consecutive month of outflows in February.

According to the report,  the European ETP market in February recorded a net outflow of 41 BTC, leading the total BTC under management in the E.U. ETPs to decline to 93,618 BTC.

Unlike the European ETP market, Canadian ETFs recorded an outstanding month. The Canadian ETFs saw net inflows of 4,835 BTC, pushing the BTC under its management to 66,226 BTC. This growth was its strongest monthly net inflow since March 2021.

It noted that strong inflows to Fidelity, Galaxy, and particularly Purpose were responsible for the Canadian ETFs market February growth.

Also, the growth has been credited to the recent Canadian trucker movement which launched a Bitcoin donation to facilitate their demand from the government.

Russia-Ukraine Crisis Tigger Outflows In U.S. BTC ETF

Data from the Arcane report also disclosed that the ongoing Russia-Ukraine conflict is hurting the U.S. BTC ETF market. The fighting according to the report triggered a strong outflow in the U.S. market.

However, despite the geopolitical fears, the U.S. market ended in the green with a net exposure increase amounting to 765 BTC. As of February 28, the BTC exposure of U.S. BTC ETFs was at 28,682 BTC.

The report also identified a diamond in the rubble. It fingered out the Brazilian BTC ETFs market which is mostly overlooked and is performing outstandingly. Last month, the Brazilian market recorded an inflow of 524 BTC, resulting in another month over in the green zone.

Notably, the Brazilian ETF sector constitutes two pure-play BTC ETFs, Hashdex’s BITH11 and QR Asset’s QBTC11. Hashdex recently launched an ETFs offering investors access to Ethereum.

It also established a decentralized finance-themed fund, and an ETF providing exposure to a wide array of other digital assets.