Last week, institutional investors invested a record $ 1.3 billion in cryptocurrency products. Grayscale remains a leader in the management of crypto assets.
According to CoinShares, funds for bitcoin and other crypto assets received record investments. Last week, cash inflows across all funds tracked in the report hit $1.3 billion – a new weekly high.
Grayscale remains a leader among cryptocurrency investment product management companies – with its funds managing $26 billion. About $21.6 billion of this amount is held in the Grayscale Bitcoin Trust (GBTC).
CoinShares attributes the influx of money last week to the dynamics of bitcoin over the past few months – 97% of the $1.3 billion was accounted for by investment products related to BTC.
However, according to the report, investment products and funds account for a small portion of the total bitcoin trading volume:
“Despite the record inflows, investment products have not experienced the liquidity of the underlying BTC and account for only 6.5% of the total trading turnover. So far this year, bitcoin trading volumes have been significantly higher – averaging $12.3 billion per day compared to $2.2 billion in 2020.”
CoinShares links the growth 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 fell to $28,000. However, a year ago, bitcoin was worth about $8,000.
This week, it became known that the target capital management funds of some universities in the United States have been buying cryptocurrency through accounts on Coinbase and other cryptocurrency exchanges over the past year.