Institutional Bitcoin products mark record AUM despite the decline in volume

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Institutional traders locked a record amount of capital in Bitcoin investment products in the second half of 2021 despite the decline in trading volume.

According to CoinShares ’November 15″Weekly capital flows for digital assets“Reported, Bitcoin (BTC) investment products saw a total inflow of $ 97.5 million between November 8 and 12, driving the sector’s assets under management to a record $ 56 billion. Year-to-date inflows (YTD) were also $ 6.5 billion last week.

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Bitcoin instruments made up 64.6% of the $ 150.9 million that went into digital investment products last week. While the record AUM with BTC hit a new all-time high of around $ 69,000 on November 10, the markets have since declined 10% to last at $ 62,100.

Although CoinShares found digital asset investment products to see inflows for 13 straight weeks, the sector experienced “subdued volumes” in the second half of 2021.

According to the report, daily volume averaged $ 750 million for the second half of the year – a retracement of 22% compared to $ 960 million in the first half of 2021.

While Ethereum saw the strongest weekly inflows in altcoin tracking products at $ 17.3 million, the number represented a 44% weekly decline for the asset class. Despite the drying up in volume, CoinShares reports a record AUM of $ 21 billion for Ethereum products, while the price of ETH hit a record high near $ 4,900 on Nov. 10

Cardano (ADA) came in a tight second at $ 16.4 million and saw weekly inflows grow 227%. CoinShares said it has been unable to “identify any discernible catalyst” that is fueling rising investments in Cardano funds.

Institutional traders locked a record amount of capital in Bitcoin investment products in the second half of 2021 despite the decline in trading volume.

Related: Bitcoin has stalled, but because of this, professional traders are still expecting $ 80,000 through January

ADA’s price also saw a significant upswing this week, hovering from about $ 2.00 on November 8th to about $ 2.36 on November 10th. However, Cardano’s price fell back to $ 2.11 on Friday. ADA is still 46% down from its all-time high in September of $ 3.09.

Investment products Solana (SOL), Polkadot (DOT), and Ripple (XRP) also posted inflows of $ 9.8 million, $ 5.2 million and $ 3.1 million, respectively, this week.