Institutional Bitcoin products tag record AUM despite volume pulling back



Institutional merchants have locked a report sum of capital into Bitcoin funding merchandise regardless of commerce quantity declining in the course of the second half of 2021.

Based on CoinShares’ Nov. 15 “Digital Asset Fund Flows Weekly” report, Bitcoin (BTC) funding merchandise noticed whole inflows of $97.5 million between Nov. 8 and Nov. 12 — pushing the sector’s belongings underneath administration (AUM) as much as a report $56 billion. 12 months-to-date (YTD) inflows additionally tagged $6.5 billion final week.

Bitcoin devices represented 64.6% of the $150.9 million that flowed into digital asset funding merchandise final week. Whereas the report AUM coincided with BTC establishing a brand new all-time excessive of roughly $69,000 on Nov. 10, the markets have since pulled again by 10% to final commerce palms for $62,100.

Regardless of CoinShares noting that digital asset funding merchandise have seen inflows for 13 consecutive weeks, the sector has posted “subdued volumes” in the course of the latter half of 2021.

Based on the report, every day volumes have averaged at $750 million in the course of the second half of the 12 months — a 22% retracement in comparison with $960 million throughout H1 2021.

Whereas Ethereum noticed the strongest weekly inflows amongst altcoin-tracking merchandise with $17.3 million, the determine marked a 44% decline week-over-week for the asset class. Regardless of quantity drying up, CoinShares reviews a report AUM of $21 billion for Ethereum merchandise whereas the worth of ETH posted report highs close to $4,900 on Nov. 10

Cardano (ADA) ranked as an in depth second, taking in $16.4 million to submit a 227% improve in weekly inflows. CoinShares mentioned that it was unable to “determine a discernible catalyst” driving the surging funding into Cardano funds.

Institutional merchants have locked a report sum of capital into Bitcoin funding merchandise regardless of commerce quantity declining in the course of the second half of 2021.

Associated: Bitcoin has stalled, however right here’s why professional merchants nonetheless count on $80K by January

The value of ADA additionally skilled a big bounce this week, shifting from round $2.00 on Nov. 8 to round $2.36 on Nov 10. Nonetheless, Cardano’s value tumbled again all the way down to $2.11 on Friday. ADA continues to be down 46% from it is September all-time excessive of $3.09.

Solana (SOL), Polkadot (DOT) and Ripple (XRP) funding merchandise additionally noticed inflows of $9.8 million, $5.2 million and $3.1 million respectively for the week.