Despite the fact that Bitcoin transaction volume has declined during the second half of 2021, institutional traders have committed a record amount of capital to Bitcoin investment products.
Bitcoin (BTC) investment products received a total of $97.5 million in inflows between November 8 and November 12, according to CoinShares‘ „Digital Asset Fund Flows Weekly“ report published on Nov. 15. The report shows that the sector’s assets under management (AUM) reached a new high of $56 billion.
Inflows for the year to date (YTD) reached a total of $6.5 billion last week.
During the previous week, bitcoin instruments accounted for 64.6 percent of the $150.9 million in capital that was invested in digital asset investment products.
While the record AUM coincided with Bitcoin reaching a new all-time high of about $69,000 on Nov. 10, the markets have since dropped down over 10%, with the cryptocurrency last changing hands for $62,100 on Nov. 14.
Despite the fact that digital asset investment products have attracted inflows for 13 straight weeks, according to CoinShares, the sector has experienced „subdued volumes“ throughout the second half of 2021 so far.
According to the research, daily volumes have averaged $750 million during the second half of the year, representing a 22 percent decrease from the $960 million recorded during the first half of the year.
While Ethereum recorded the most weekly inflows among altcoin-tracking products, with $17.3 million, the figure represented a 44 percent drop in the asset class week-over-week, according to CoinMarketCap. Although Ethereum trading volume has slowed significantly, CoinShares reported a record AUM of $21 billion for Ethereum-related assets, while the price of ETH reached record highs near $4,900 on November 10.
Coins such as Cardano (ADA) and NEO (NEO) came in second and third, respectively, with $16.4 million and a 227 percent rise in weekly inflows. Despite its efforts, CoinShares has been unable to „find an identifiable driver“ that is driving the surge in investment into Cardano funds.
Despite the fact that Bitcoin transaction volume has declined during the second half of 2021, institutional traders have committed a record amount of capital to Bitcoin investment products.
Additionally, the price of ADA has seen a considerable increase this week, rising from around $2.00 on Nov. 8 to approximately $2.36 on Nov. 10. Cardano’s price, on the other hand, fell down to $2.11 on Friday after a brief rise. ADA is still down 46 percent from its all-time high of $3.09, reached in September of this year.
In addition, investment products such as Solana (SOL), Polkadot (DOT), and Ripple (XRP) had inflows of $9.8 million, $5.2 million, and $3.1 million, respectively, for the previous week.
