Digital asset ETPs surge in Q2 as investors flock to regulated crypto exposure, Fineqia analysis shows

Exchange-traded products backed by digital assets posted strong growth in the second quarter of 2025, as investors continued to favor structured and regulated vehicles over direct crypto exposure.

Assets under management in these products rose to a record $176.68 billion by the end of June, according to Fineqia International Inc (CSE:FNQ, OTC:FNQQF)’s monthly report, marking a 41.3% gain for the quarter and a 17.1% increase year to date.

“These findings highlight the increasingly central role of ETPs in shaping institutional access to digital assets globally,” said Matteo Greco, senior associate at Fineqia International and author of the report.

The growth of digital asset ETPs continues to outpace the underlying crypto market. The total market capitalization of digital assets rose just 1.1% in June and 0.9% year to date, underscoring that inflows are increasingly directed toward regulated financial products even as broader crypto prices remain flat.

Bitcoin-backed ETPs remain dominant

Bitcoin-focused ETPs led the way, with AUM rising to $153.43 billion by the end of June—a 4.1% increase for the month and up from $108.91 billion at the end of March. That growth represents a 78.8% premium over Bitcoin’s price appreciation in Q2, with the asset climbing nearly 30% over the same period.

“This trend reversed sharply in Q2, with strong inflows driving significant outperformance in BTC ETP AUM growth relative to the underlying asset’s price appreciation,” Greco said.

After experiencing net outflows in February and March, Bitcoin ETPs rebounded strongly. Since the launch of US-listed spot Bitcoin ETFs in January 2024, these funds have attracted $49 billion in net inflows, including $13 billion in 2025 alone, according to the report.

Ethereum ETPs rebound amid price weakness

Ethereum has lagged behind Bitcoin this year, with its price falling 2.1% in June and down 25.3% year to date. Still, investor demand for Ethereum-backed ETPs surged in Q2. AUM rose 3.3% in June to $13.39 billion, and nearly 59% over the quarter.

“Despite ETH’s underperformance in price terms, investor interest in ETH-backed ETPs has returned,” Greco wrote. “Q2 recorded a 61.1% premium for ETH ETPs, signalling substantial net inflows and renewed appetite for crypto assets beyond Bitcoin.”

ETH ETPs remain 17.7% below their AUM at the end of 2024, but the Q2 recovery marks a sharp turnaround from the first quarter, which was marked by negative flows.

Altcoin and basket products diverge

The report also highlighted diverging performance between single-asset altcoin ETPs and diversified crypto baskets. Altcoin-focused products fell 4.6% in June to $5.13 billion in AUM, continuing a 11.4% year-to-date decline. In contrast, multi-asset basket ETPs, which typically include Bitcoin exposure, rose 2.1% in June and gained 37.7% in Q2.

“This reflects the broader underperformance of altcoins relative to previous market cycles, reinforcing the status of BTC as the main driver of AUM growth and premium,” said Greco.

A 'structural shift' in crypto investing

The growing divergence between digital asset ETP AUM and broader crypto market capitalization reflects what the report describes as a “structural shift in investor behavior.” While price growth in underlying assets has stalled in 2025, regulated crypto vehicles have continued to attract capital.

“These figures reaffirm the strong net inflows into digital asset ETPs observed since the approval of US spot Bitcoin ETFs in early January 2024, which marked a significant milestone for institutional adoption,” Greco wrote.

Bitcoin remains the foundation of the market, but the second quarter revealed broader investor appetite. Ethereum ETPs regained momentum, and diversified products saw cautious but steady inflows.

Digital asset ETPs have become the primary gateway for investors seeking crypto exposure through institutional-grade structures—a trend likely to persist in the second half of 2025.