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Research Says Institutional-Grade Exchange-Traded Products Surged In Volume This Month

Research revealed that institutional-grade exchange-traded products surged in volume this month, as CryptoCompare delves into some metrics behind Bitcoin’s (BTC) epic bull run to a new 2020 high of $17,800 and reveals that institutions have been a driver of momentum.

It has been reported that the Digital Asset Management Review found that aggregate exchange-traded product volumes have surged 53% over the past 30 days.

However, average daily volumes now stand at $173.5 million compared to $113 million in October. Exchange-traded products, or ETPs, are types of securities that track underlying securities, indexes, or financial instruments, in this case, Bitcoin.

Major institutional grade crypto fund providers have seen volumes and demand surge over the past 30 days. — Cointelegraph (@Cointelegraph) November 18, 2020

The report noted Grayscale’s Bitcoin Trust product as one of the key drivers of momentum by surpassing $9 billion in assets under management.

The latest update from the institutional fund posted on November 18 stated that it has hit a milestone of $10 billion in digital assets under management. Grayscale now holds half a million BTC.

MILESTONE: Grayscale just surpassed $10 billion total AUM. It's yet another reason to #GoGrayscale. — Grayscale (@Grayscale) November 17, 2020

Likewise, Grayscale’s Ethereum Trust product (ETHE) followed with assets under management of $1.7 billion, an increase of over 40% in the previous 30 days.

The institutional-grade fund provider has also been loading up on Litecoin (LTC), which now represents $58 million in AUM by surpassing the Bitcoin Cash Trust’s $46 million.

The report added that 3iQ’s Bitcoin Fund (QBTC) experienced its highest returns over the last 30 days at just over 49%. 3iQ is Canada’s leading Bitcoin and crypto asset fund manager.

Moreover, ETC Group’s BTCE product saw the largest percentage increase in assets under management, which almost doubled to $116 million, a surge of 93% from the previous 30 days.

Average volumes for the BTCE product tripled in November to $8.87 million per day, which is over 200% higher than October’s average.

Launched in June 2020, The BTCE fund became the first Bitcoin-based ETP to list on Xetra, a trading technology platform operated by the Deutsche Börse Group.

Thus, institutional-grade products are playing a far greater role in Bitcoin’s rally in 2020.

Source: Cointelegraph



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