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Bitcoin outpaced other digital assets as it saw 97% of the total inflows, notwithstanding the fact that it dominates the Assets Under Management (AUM) by 83%.
Bitcoin is building on its reputation as the world’s largest cryptocurrency by market capitalization as a new report has shown more impressive data about the coin. The report, a publication from crypto asset management firm CoinShares, dubbed the ‘Digital Assets Funds Flow Weekly’, revealed that the Bitcoin average daily trading volume has topped $12.3 billion in 2021, up from barely $2 billion in 2020.
The Funds Flow report however profiled the inflows and outflows from asset management firms including popular ETPs, mutual funds, and OTC trusts referencing bitcoin, ether, and other digital assets. Bitcoin performance and trading volume are not unexpected as BTC remains the cryptocurrency that is most reckoned with by both institutional and retail investors alike.
Bitcoin outpaced other digital assets as it saw 97% of the total inflows, notwithstanding the fact that it dominates the Assets Under Management (AUM) by 83%. Investment product inflows in the week under review hit a record total of US$1.31bn after recording a period of minor outflows. The CoinShares researchers believe investors have been very price-conscious this year as they aim to maintain caution due to the speed at which prices in Bitcoin achieved new highs.
“We believe investors have been very price conscious this year due to the speed at which prices in bitcoin achieved new highs,” said James Butterfill, investment strategist, at CoinShares.
Investors have also been cautious when it comes to Ethereum as inflows have toned down since December. Total inflows recorded by Ethereum came in at $34 million.
Bitcoin Inflow Performance
The CoinShares report shows that Grayscale Investments LLC, the biggest crypto asset management firm saw the largest inflow in the week under review with a monetary value of $1,067.8 billion atop a $24 billion asset under management, down from $28.2 billion on January 8. CoinShares ranked second with a total inflow of $172.1 million atop a $2.97 billion AUM which dropped from $3.4 billion on January 8.
Other asset managers profiled include 3iQ, ETC Issuance, and 21Shares to mention a few, and all have a relatively fair contribution to the overall inflow recorded in the week under review.
Per the individual digital asset, the total inflow for Bitcoin came in at $12.662 billion atop a cumulative $24.8 billion of the assets locked up under management. Ethereum’s total inflow record as noted is $34 million and approximately $4.7 billion of the asset is kept under management. XRP, Bitcoin Cash, and others also add up to the total of $29.744 of crypto assets locked under management.
Despite these figures, CoinShares researchers believe that asset managers have not yet tested the liquidity of Bitcoin as Bitcoin AUM represents just 6.5% of total Bitcoin trading turnover. This lag may soon be covered should the continuous adoption from institutional investors pick a more bullish momentum in the coming weeks.