Bitcoin ETP Surges in Volume by 50% with Institutional Investment

A crypto research firm, CryptoCompare has recently shown that there has been a huge surge in volume for exchange-traded products (ETPs) on an institutional level. The report also looked into some of the reasons behind the impressive bull run that has been recently seen in Bitcoin. As of now, Bitcoin has reached a price of $18,200, which is a new high for this year and a milestone that it had last achieved three years ago. CryptoCompare indicated that the surge in momentum was being driven forward by an influx of institutional players in the market. The Digital Asset Management Review was sent out by CryptoCompare, which highlighted that there was an increase of 53% in the aggregate volumes for the ETPSs in the span of a month.

In the same review, it was noted that the average daily volume (ADV) had reached a total of $173.5 million, which is a great deal higher than the $113 million it had reached in October. As far as ETPs are concerned, they are defined as securities that track an underlying financial instrument, security or an underlying index. In the case of Bitcoin’s ETPs, these securities track the cryptocurrency itself, as obvious from the name. 

CryptoCompare also made a reference to the Bitcoin Trust of Grayscale in the report, which is one of the key reasons behind this bullish surge in the overall momentum. The total value of assets that are currently under Grayscale’s management is about $9 billion, but there is a good chance that these numbers are outdated. This is due to the fact that the asset management firm posted on November 18th, 2020 that they had reached the $10 billion milestone where assets under their management are concerned. The announcement said that they are also proud owners of more than half a million Bitcoin. 

Referred to as the ETHE, the Ethereum Trust product of Grayscale Investments has a total of $1.7 billion assets under its management. This is more than 40% of what it was a month ago. The institutional fund manager has also paid attention towards Litecoin and $58 million of the crypto is also under its management. There is $46 million that falls in the category of the Bitcoin Cash Trust, which is just a bit less than Litecoin, but this is also expected to change over time. The report also noted that 3iQ’s Bitcoin Fund had also seen increasing level of returns in the last 30 days, which had gone just above 49%. 

3iQ is Canada’s top crypto asset fund manager. ETC Group, another institutional player, saw a huge percentage increase in its BTCE product, which went up by 93% in the last 30 days. Now, this product is valued at $116 million. It also saw a huge rise in its volumes, as the average volumes tripled in November. The average volume for November is $8.87 million per day, which is a 200% increase in the average of October.