Global digital asset exchange-traded products (ETPs) stabilized in March 2026 after a turbulent first quarter, with total assets under management (AUM) dipping slightly to $122.4 billion, according to research from Fineqia International Inc (CSE:FNQ).

The marginal 0.1% decline in ETP AUM followed steep drawdowns in January and February, while the broader digital asset market showed modest recovery, the Toronto-based company’s analysis revealed.

Total market capitalization rose 1.9% to $2.43 trillion, reflecting improved underlying prices but limited investor inflows into ETPs, Fineqia senior analyst Matteo Greco noted.

“The first quarter of 2026 marked a clear break from the strong growth trends seen throughout 2024 and most of 2025,” Greco said.

Total ETP AUM fell 25.5% from $164.2 billion at the end of 2025, slightly exceeding the 20.4% contraction in total digital asset market capitalization. “This suggests the downturn was driven not only by price weakness but also by a moderation in investor demand for exchange-traded crypto exposure,” Greco added.

Bitcoin-backed ETPs remained relatively flat in March, with AUM edging up 0.03% to $99.7 billion, closely tracking BTC’s 0.5% price rise to $68,006.

Bitcoin’s share of total crypto ETP AUM increased to about 81.5%, underscoring its role as the primary allocation for institutional investors in defensive market conditions.

On a quarterly basis, Bitcoin ETPs fell 23.7% from year-end 2025, mirroring BTC’s 22.3% price decline.

Ethereum ETPs recorded a modest uptick in March, with AUM rising 0.8% to $14.4 billion, even as ETH surged 8.2% to $2,126.

The weaker alignment between price and AUM suggests flows remained subdued, Fineqia said.

Over Q1, Ethereum ETPs fell 33%, outpacing ETH’s 28.3% price drop, highlighting relative investor caution compared with Bitcoin.

Altcoin and basket ETPs continued to underperform, reflecting waning risk appetite.

Altcoin ETP AUM fell 3.4% to $5.18 billion, while basket ETPs dropped 1.3% to $3.04 billion in March.

Combined, these products accounted for just 6.7% of total crypto ETP AUM, down slightly from February. Over the quarter, altcoin and basket ETPs declined 29.4% and 34.4%, respectively.

Despite the short-term weakness, the number of listed digital asset ETPs rose to 318 by the end of March, up from 312 at the close of 2025. “The increase in product listings indicates that the long-term structural growth of the crypto ETP market remains intact,” Greco said.

Fineqia’s report concluded that while March saw stabilization, the trajectory of flows in the coming months will be critical in determining whether the first quarter’s sell-off represents a temporary reset or a broader shift in institutional demand for crypto ETPs.