Institutions add to the surge as Bitcoin ETP volumes increase by 50%

Recent research has shown this Institutional exchanges have increased in volume this month.

A report from CryptoCompare looks at and reveals some of the metrics behind Bitcoin’s epic bull run to a new high of $ 17,800 in 2020 Institutions were a driving force.

The Digital Asset Management Review noted this The total volume of Commercial Exchange Products (ETPs) has increased 53% in the last 30 days. The average daily volume is now $ 173.5 million, up from $ 113 million in October. ETPs are types of securities that track an underlying security, index, or financial instrument, in this case Bitcoin.

Institutions add to the surge as Bitcoin ETP volumes increase by 50%
Institutions add to the surge as Bitcoin ETP volumes increase by 50%

The report cited Grayscale’s Bitcoin Trust product as a major driver of the momentum, which has more than $ 9 billion in assets under management. (However, the institutional fund’s most recent update, released Nov. 18, says it has reached a milestone of $ 10 billion in digital assets under management.) Grayscale is now half a million BTC.

Grayscale’s Ethereum Trust (ETHE) product followed with $ 1.7 billion in assets under management, an increase of more than 40% over the past 30 days. The institutional funder has also amassed Litecoin, which now accounts for an AUM of $ 58 million, beating the Bitcoin Cash Trust at $ 46 million.

The report added 3iQ’s Bitcoin Fund (QBTC) achieved the highest returns in the last 30 days at just over 49%.. 3iQ is Canada’s leading bitcoin and crypto asset fund manager.

The ETC Group’s BTCE product saw the largest percentage increase in AUM, nearly doubling to $ 116 million. This corresponds to an increase of 93 percent compared to the last 30 days. The average volume of the BTCE product tripled in November to $ 8.87 million per day, which is more than 200% above the October average.

The BTCE fund was launched in June 2020 and was the first Bitcoin-based ETP to appear on the XETRA list. a commercial technology platform of Deutsche Börse.

Meanwhile, At WisdomTree’s BTCW, AUM rose 65% to $ 79 million over the same period. WisdomTree is an exchange traded fund based in New York and sponsor and asset manager of ETP.

Institutional grade products will play a much bigger role in the 2020 Bitcoin rally. When BTC last rose to these prices in 2017, the Chicago Mercantile Exchange and Chicago Board Options Exchange had just launched the first institutional Bitcoin futures products for the asset.

Don’t stop reading:

Similar Posts