{"id":109340,"date":"2021-01-22T17:01:23","date_gmt":"2021-01-22T17:01:23","guid":{"rendered":"https:\/\/precoinnews.com\/?p=109340"},"modified":"2021-01-22T17:01:23","modified_gmt":"2021-01-22T17:01:23","slug":"crypto-etp-capitalization-up-90-this-month-as-institutional-volume-triples","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/crypto-etp-capitalization-up-90-this-month-as-institutional-volume-triples\/","title":{"rendered":"Crypto ETP capitalization up 90% this month as institutional volume triples"},"content":{"rendered":"
Capital has flooded into crypto investment products in recent weeks, with the value of assets invested into crypto exchange-traded products, or ETPs, increasing by more than 90% in the last 30 days.<\/p>\n
The spike in the assets under management, or AUM, locked in crypto ETPs was noted in the latest report by Crypto Compare, which estimates that almost $36 billion is now invested in crypto ETPs \u2014 a 93.7% increase in one month.<\/p>\n
Grayscale\u2019s various trusts represent more than 83% of the sector\u2019s total AUM, with the firm\u2019s Bitcoin Trust housing $22.6 billion or 63% of all capital invested in crypto ETPs.<\/p>\n
Crypto Compare estimates that ETP volumes tripled during January,with aggregate daily volume pushing above $1.5 billion. Grayscale\u2019s products were found to represent 64% of the sector\u2019s volume, driving $972 million in daily trade.<\/p>\n
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Despite Grayscale\u2019s dominant share of trade volume, its products were found to have underperformed the spot markets as the historic premium on Grayscale\u2019s shares fell by 8% during January.<\/p>\n
The AUM of Grayscale\u2019s Litecoin Trust grew 111% to tag $3.84 billion last month, sitting roughly 10% greater than the $3.47B managed by its Ethereum Trust.<\/p>\n
Less well known funds also saw significant growth, including 3iQ\u2019s Bitcoin Fund which saw a 43% jump in AUM to $3.47B.<\/p>\n
Trade volume for crypto Exchange-traded notes, or ETNs, nearly tripled over the month. ETC Group\u2019s BTCE product dominated ETN volumes with nearly $50 million in daily trade \u2014 representing more than two-thirds of total ETN volume. <\/p>\n
WisdomTree\u2019s BTCW\/USD was the second-most traded ETN with $7 million in daily volume after its trade activity increased more than 210%, followed by VanEck\u2019s Bitcoin Vectors with $5 million \u2014 owing to a nearly 500% jump in volume .<\/p>\n
Trading in exchange-traded certificates, or ETCs, more than doubled, with XBT Provider\u2019s Bitcoin Tracker Euro and Bitcoin Tracker One products representing more than half of combined ETC volume \u2014 driving $45.6 million and $34.9 million in respective daily trade.<\/p>\n
XBT provider\u2019s Ether-derived products are the next-most popular ETCs, with Ether Tracker One and Ether Tracker Euro pushing $18.2 million and $17.8 million respectively.<\/p>\n