Institutions help drive rally as Bitcoin ETP volumes surge 50%

Published at: Nov. 18, 2020

Recent research has revealed that institutional-grade exchange-traded products surged in volume this month.

A report by CryptoCompare delves into some metrics behind Bitcoin’s (BTC) epic bull run to a new 2020 high of $17,800 and reveals that institutions have been a driver of momentum.

The Digital Asset Management Review found that aggregate exchange-traded products volumes have surged 53% over the past 30 days. Average daily volumes now stand at $173.5 million compared to $113 million in October. Exchange-traded products, or ETPs, are types of securities that track underlying securities, indexes or financial instruments — in this case, Bitcoin.

The report cited Grayscale’s Bitcoin Trust product as one of the key drivers of momentum, surpassing $9 billion in assets under management. However, the latest update from the institutional fund posted on Nov. 18 states that it has hit a milestone of $10 billion in digital assets under management. Grayscale now holds half a million BTC.

MILESTONE: Grayscale just surpassed $10 billion total AUM. It's yet another reason to #GoGrayscale. pic.twitter.com/j5mWQbIzGm

— Grayscale (@Grayscale) November 17, 2020

Grayscale’s Ethereum Trust product (ETHE) followed, with assets under management of $1.7 billion, an increase of over 40% on the previous 30 days. The institutional grade fund provider has also been loading up on Litecoin (LTC), which now represents $58 million in AUM, surpassing the Bitcoin Cash Trust’s $46 million.

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

ETC Group’s BTCE product saw the largest percentage increase in assets under management, which almost doubled to $116 million, a surge of 93% from the previous 30 days. Average volumes for the BTCE product tripled in November to $8.87 million per day, which is over 200% higher than October’s average.

The BTCE fund was launched in June 2020, becoming the first Bitcoin-based ETP to list on Xetra, a trading technology platform operated by the Deutsche Börse Group.

WisdomTree’s BTCW meanwhile experienced a 65% increase in assets under management to $79 million over the same period. WisdomTree is a New York-based exchange-traded fund and ETP sponsor and asset manager.

Institutional-grade products are playing a far greater role in Bitcoin’s rally in 2020. The last time BTC surged to these prices in 2017, the Chicago Mercantile Exchange and Chicago Board Options Exchange were just launching the first institutional Bitcoin futures products for the asset.

Tags
Bitcoin
Finance
Related Posts
Financial analyst agrees Bitcoin could be 'rat poison,' but not in the way you think
Famous investor and Berkshire Hathaway CEO Warren Buffet called Bitcoin "probably rat poison squared" back in 2018. In his 2020 fourth-quarter market letter, financial analyst Bill Miller agreed with Buffett’s description of the asset — but not without his own addendum. “Warren Buffett famously called bitcoin ‘rat poison,’” Miller said in his Saturday letter, adding: “He may well be right. Bitcoin could be rat poison, and the rat could be cash.” Miller started his letter by explaining how each new year often paves the way for various financial predictions. Financial expectations and projections can be worthless, however, as proven by …
Adoption / Jan. 6, 2021
Bitcoin's limited supply doesn't really matter to one markets commentator
Bitcoin (BTC) has won over a number of mainstream financial gurus in 2020 against the backdrop of a difficult year for the United States economy. Some markets experts, such as Dennis Gartman, however, still remain skeptical of the digital asset. Gold and Bitcoin are not really equivalent, according to Gartman’s Tuesday interview with Bloomberg. “Gold has been around for thousands of years, Bitcoin has been around for 20 years,” he said. Gartman put out a financial commentary series for 30 years, called The Gartman Letter. Bitcoin has not been around for 20 years though. The asset’s pseudonymous creator, Satoshi Nakamoto, …
Bitcoin / Dec. 22, 2020
South Korea’s Financial Watchdog Urges Lawmakers to Move Forward With Crypto Bill
South Korean watchdog the Financial Services Commission (FSC) has urged lawmakers to hasten their approval of the country’s first cryptocurrency bill, Bloomberg reports July 26. Hong Seong-ki, head of the FSC’s virtual currency response team, has reportedly warned of the security and money laundering risks courted by the country’s domestic crypto exchanges. Bloomberg cites Seong-ki as saying that: “While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention [AML] and investor protection. The bill should …
Bitcoin / July 26, 2018
The battle of banks vs. DeFi is a win for individual crypto investors
The state of banking and finance today presents a complex labyrinth that even seasoned bankers struggle to navigate. Despite appearances, there is a method to this madness. As Nobel Prize winners like Muhammad Yunus and Joseph Stiglitz have cautioned in the past: central banking, in particular, has morphed to keep the status quo in check. Or, in the words of Mike Maloney, an expert on monetary history and economics: It is “the biggest scam in the history of mankind.” Maloney reasons that giving a small group of unelected individuals the keys to the monetary printing press will undoubtedly rot away …
Decentralization / Dec. 19, 2021
FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer
Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money. A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far. 1/ Myself and @bax1337 spent this past weekend …
Blockchain / Nov. 29, 2022