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Institutional Bitcoin products tag record AUM despite volume pulling back

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Institutional merchants have locked a file sum of capital into Bitcoin funding merchandise regardless of commerce quantity declining throughout the second half of 2021.

In response to CoinShares’ Nov. 15 “Digital Asset Fund Flows Weeklyreport, Bitcoin (BTC) funding merchandise noticed complete inflows of $97.5 million between Nov. 8 and Nov. 12 — pushing the sector’s property beneath administration (AUM) as much as a file $56 billion. Yr-to-date (YTD) inflows additionally tagged $6.5 billion final week.

Bitcoin devices represented 64.6% of the $150.9 million that flowed into digital asset funding merchandise final week. Whereas the file AUM coincided with BTC establishing a new all-time high of roughly $69,000 on Nov. 10, the markets have since pulled back by 10% to final commerce arms for $62,100.

Regardless of CoinShares noting that digital asset funding merchandise have seen inflows for 13 consecutive weeks, the sector has posted “subdued volumes” throughout the latter half of 2021.

In response to the report, each day volumes have averaged at $750 million throughout the second half of the 12 months — a 22% retracement in comparison with $960 million throughout H1 2021.

Whereas Ethereum noticed the strongest weekly inflows amongst altcoin-tracking merchandise with $17.3 million, the determine marked a 44% decline week-over-week for the asset class. Regardless of quantity drying up, CoinShares stories a file AUM of $21 billion for Ethereum merchandise whereas the worth of ETH posted file highs close to $4,900 on Nov. 10

Cardano (ADA) ranked as a detailed second, taking in $16.4 million to submit a 227% enhance in weekly inflows. CoinShares stated that it was unable to “determine a discernible catalyst” driving the surging funding into Cardano funds.

Institutional merchants have locked a file sum of capital into Bitcoin funding merchandise regardless of commerce quantity declining throughout the second half of 2021.

Associated: Bitcoin has stalled, but here’s why pro traders still expect $80K by January

The value of ADA additionally skilled a major bounce this week, shifting from round $2.00 on Nov. 8 to round $2.36 on Nov 10. Nevertheless, Cardano’s value tumbled again all the way down to $2.11 on Friday. ADA continues to be down 46% from it is September all-time excessive of $3.09.

Solana (SOL), Polkadot (DOT) and Ripple (XRP) funding merchandise additionally noticed inflows of $9.8 million, $5.2 million and $3.1 million respectively for the week.