Record first quarter for institutional crypto investment products: CoinShares

Apr 7, 2021 | CoinTelegraph News | 0 comments

record-first-quarter-for-institutional-crypto-investment-products:-coinshares

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 has hit a new record for institutional crypto product inflows.

As reported in the April 6 CoinShares Fund Flows Weekly 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, ending on April 2, 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 Mar. 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 products, or 78% of the total, and $20 million in Ethereum. Overall volumes for Bitcoin investment products comprise a relatively  small share of 6.7% of the total trading volume for regulated or ‘trusted’ 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 lion’s 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 Switzerland’s regulated crypto exchange, SIX Swiss Exchange.

The Litecoin ETP is the third institutional-grade product the firm has launched in 2021. It follows a physically-backed Bitcoin ETP in January and a similar one for Ethereum in February.

On April 1, Cointelegraph reported that CoinShares had entered a partnership with Canadian investment fund manager 3iQ in order to launch a Bitcoin exchange-traded fund (ETF) in Canada.

3iQ launched Canada’s first institutional Bitcoin fund in April 2020, and it currently has $1.7 billion in assets under management according to the CoinShares report.

News Source from CoinTelegraph.com

Related Articles

Why China’s bitcoin mining dominance is fading

Why China’s bitcoin mining dominance is fading

Quick Take For years, China-based bitcoin miners have held the vast majority of the bitcoin network’s mining capacity. Lately, that dominance has been fading. A global chip shortage and a shift in the market for mining hardware are the two major contributing factors....

Algorand pledges carbon-negative blockchain

Algorand pledges carbon-negative blockchain

Algorand and ClimateTrade are working on a sustainability oracle that would drive down carbon emissions. Smart contract platform Algorand plans to achieve a carbon-negative network by implementing a “sustainability oracle” in partnership with ClimateTrade, in a move...

Pin It on Pinterest

Share This