Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Assets under management for institutional funds have hit a record high of $59 billion.
According to digital asset investment manager CoinShares, the first quarter of 2021 hit a new record for institutional crypto product inflows.
As reported in CoinSharesâ Tuesday âDigital Asset Fund Flows Weeklyâ bulletin, Q1 of this year hit a new record with $4.5 billion in inflows compared with $3.9 billion in the final quarter of 2020.
It added that inflows for the past week recorded, which ended on Friday, totaled $106 million, helping push the total for the three-month period 11% higher than the previous quarter. The inflow was down on previous weeks, however, as the week ending March 12 recorded a $242-million inflow.
While institutional inflows have slowed, CoinShares believes it is not indicative of a broader slowing trend, as quarterly growth rates tend to be varied.
Inflows for the past week have been dominated by $83 million in Bitcoin (BTC) products, or 78% of the total, and $20 million in Ether (ETH). Overall volumes for Bitcoin investment products comprise a relatively small share of 6.7% of the total trading volume for regulated or âtrustedâ cryptocurrency exchanges.
Assets under management for both active and passive crypto investment products are at an all-time high of $59 billion. Grayscale makes up the lionâs share of this AUM figure with $46 billion, or 78% of the total. The second-largest crypto asset fund is CoinShares itself with $5 billion in assets under management.
The European digital asset investment firm has expanded its institutional products this week with the introduction of a physically backed Litecoin exchange-traded product. The new CoinShares investment product will be initially listed on Switzerlandâs regulated crypto exchange, SIX Swiss Exchange.
The Litecoin (LTC) ETP is the third institutional-grade product the firm has launched in 2021. It follows a physically backed Bitcoin ETP launched in January and a similar one for Ether in February.
On Thursday, Cointelegraph reported that CoinShares had entered a partnership with Canadian investment fund manager 3iQ in order to launch a Bitcoin exchange-traded fund in Canada.
In April 2020, 3iQ launched Canadaâs first institutional Bitcoin fund, and it currently has $1.7 billion in assets under management according to the CoinShares report.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.