Institutional investors poured a record $ 1.3 billion into crypto products last week. Grayscale remains a leader in crypto asset management.
Bitcoin funds and other cryptoassets have received record investments, according to CoinShares. Last week, cash inflows across all funds monitored in the report reached $ 1.3 billion, a new weekly high.
Grayscale remains the leader among cryptocurrency investment product management companies – its funds manage $ 26 billion. About $ 21.6 billion of this amount are held in the Grayscale Bitcoin Trust (GBTC).
CoinShares links last week’s cash inflow to Bitcoin’s performance over the past few months – 97% of the $ 1.3 billion came from BTC-related investment products.
However, according to the report, investment products and funds represent a small fraction of the total bitcoin trading volume:
“Despite the record inflow, investment products did not experience the liquidity of the underlying BTC and account for only 6.5% of the total trading volume. So far this year, bitcoin trading volumes have been significantly higher, averaging $ 12.3 billion per day, up from $ 2.2 billion in 2020. ”
CoinShares links the rise in the number of people trading BTC to the price movements of the cryptocurrency. After hitting a new all-time high of $ 42,000 earlier this month, BTC has dropped to $ 28,000. However, a year ago, Bitcoin was worth around $ 8,000.
It became known this week that endowment funds of some universities in the United States have purchased cryptocurrency through accounts at Coinbase and other cryptocurrency exchanges over the past year.
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