Bitcoin Institutional Products Set AUM Record Despite Declining Volume

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Institutional traders have locked in a record amount of capital in Bitcoin investment products despite declining trading volume in the second half of 2021.

According to CoinShares’ “Digital Asset Fund Flows Weekly” report of November 15, Bitcoin investment products (BTC) registered total inflows of $ 97.5 million between November 8 and 12, pushing assets under management sector (AUM) to a record. $ 56 billion. Year-to-date inflows (YTD) also hit $ 6.5 billion last week.

Bitcoin instruments accounted for 64.6% of the $ 150.9 million that was invested in digital asset investment products last week. While the record AUM coincided with BTC setting a new all-time high of around $ 69,000 on November 10, markets have since retreated 10% to trade the final hand for $ 62,100.

Although CoinShares noted that digital asset investment products have registered entries for 13 consecutive weeks, the sector has posted “moderate volumes” in the second half of 2021.

According to the report, daily volumes averaged $ 750 million in the second half of the year – a 22% retracement from $ 960 million in the first half of 2021.

While Ethereum recorded the largest weekly entries among altcoin tracking products at $ 17.3 million, the figure marked a 44% week-over-week decline for the asset class. . Despite the volume drying up, CoinShares is reporting record $ 21 billion in assets under management for Ethereum products as the price of ETH hit record highs of nearly $ 4,900 on November 10.

Cardano (ADA) came in close second, with $ 16.4 million to post a 227% increase in weekly admissions. CoinShares said it was unable to “identify a discernible catalyst” behind the increase in investment in Cardano funds.

Institutional traders have locked in a record amount of capital in Bitcoin investment products despite declining trading volume in the second half of 2021.

Related: Bitcoin Stalled, But Here’s Why Professional Traders Still Expect $ 80,000 By January

The price of ADA also saw a significant rebound this week, going from around $ 2.00 on November 8 to around $ 2.36 on November 10. However, Cardano’s price fell back to $ 2.11 on Friday. The ADA is still down 46% from its all-time high of $ 3.09 in September.

Investment products Solana (SOL), Polkadot (DOT) and Ripple (XRP) also recorded inflows of $ 9.8 million, $ 5.2 million and $ 3.1 million respectively for the week.

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