Institutional Bitcoin products tag record AUM despite volume pulling back

Despite the decline in trade volume during the second half 2021, institutional traders have invested a record amount of capital in Bitcoin investment products.

According to CoinShares’ Nov. 15, “Digital Asset Fund Flows Weekly”, report, total inflows to Bitcoin (BTC), investment products, reached $97.5 million between Nov. 8, and Nov. 12, pushing the sector’s assets of management (AUM), up to a record $56billion. Last week’s $6.5 billion inflows were also recorded year-to-date.

Bitcoin instruments accounted for 64.6% in the $150.9 million flowed into digital assets investment products last week. The record AUM was set by Bitcoin, which reached a record high of $69,000 on Nov. 10. However, the market has since seen a 10% drop in trading volumes to $62,100.

CoinShares noted that inflows to digital asset investment products were observed for 13 consecutive week, but the sector posted “subdued volumes” during the second half of 2021.

The report shows that daily volumes averaged $750 million in the second half of this year, a 22% increase over H1 2021’s $960 million.

With $17.3 million in weekly inflows, Ethereum was the altcoin-tracking product with the highest. However, this figure showed a 44% decrease week-over-week. Despite volume cooling, CoinShares reported a record AUM for Ethereum products at $21 billion. The price of ETH reached record highs of nearly $4,900 on Nov. 10.

Cardano (ADA), which took in $16.4million to record a 227% increase of weekly inflows, came in second. CoinShares stated that it could not “identify any discernible catalyst” for the surge in investment into Cardano funds.

Despite the decline in trade volume during the second half 2021, institutional traders have invested a record amount of capital in Bitcoin investment products.

Related: Bitcoin is in a stalemate, but pro traders still anticipate $80K by January

The price of ADA saw a significant rise this week. It moved from $2.00 on Nov. 8, to $2.36 on November 10. Cardano’s stock price fell to $2.11 Friday. ADA is still 46% below its September record of $3.09, but it’s still a significant drop.

Inflows to investment products Solana (SOL), Polkadot(DOT) and Ripple [XRP] also reached $9.8m, $5.2m and $3.1m respectively during the week.

https://cointelegraph.com/news/institutional-bitcoin-products-tag-record-aum-despite-volume-pulling-back