Record first quarter for institutional crypto investment products: CoinShares

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According to digital asset investment manager CoinShares, the first quarter of 2021 reached a new record for the influx of institutional crypto products.

As reported in CoinShares on April 6 Weekly cash flow Bulletin, the first quarter of this year hit a new record with $ 4.5 billion in inflows compared to $ 3.9 billion in the last quarter of 2020.

He added that the inflows for last week, ending April 2, totaled $ 106 million, which helped push the three-month period total up 11% from the previous quarter. The inflow was down from previous weeks, however, with the week ending March 12 seeing an inflow of $ 242 million.

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Although institutional inflows have slowed, CoinShares believes that does not signify a broader slowing trend, as quarterly growth rates tend to vary.

Last week’s entries were dominated by $ 83 million in Bitcoin products, or 78% of the total, and $ 20 million in Ethereum. The overall volumes of Bitcoin investment products represent a relatively small 6.7% share of the total transaction volume for regulated or “ trusted ” cryptocurrency exchanges.

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Assets under management for both active and passive crypto investment products hit a record high of $ 59 billion. Grayscale represents the lion’s share of that AUM figure with $ 46 billion, or 78% of the total. The second largest crypto asset fund is CoinShares itself with $ 5 billion in assets under management.

The European digital asset investment firm expanded its institutional products this week with the introduction of a physically backed Litecoin exchange traded product. The new CoinShares investment product will initially be listed on the Swiss regulated crypto exchange, SIX Swiss Exchange.

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Litecoin ETP is the third institutional grade product the company launched in 2021. It follows a physically backed Bitcoin ETP in January and a similar one for Ethereum in February.

On April 1, TBEN announced that CoinShares had entered into a partnership with Canadian investment fund manager 3iQ to launch a Bitcoin exchange-traded fund (ETF) in Canada.

3iQ launched Canada’s first institutional Bitcoin fund in April 2020 and currently has $ 1.7 billion in assets under management according to the CoinShares report.