While Bitcoin (BTC) is currently on the rise in the market in recent weeks, analysts are looking at the factors that helped or triggered this cycle. Examination of certain parameters allowed CryptoCompare to reveal in a recent report the important role played by institutional investors. The latter would thus have contributed a lot to the rise of bitcoin following their increased interest in ETPs or products traded on the bitcoin exchange. This service offered by fund managers specializing in digital assets will have enabled them to record significant volumes over the last 30 days.
Growing interest illustrated by Grayscale’s record performance
Worth $ 113 million in October, average volumes of exchange traded products now stand at $ 173.5 million according to data from Digital Asset Management Review. An increase of over 50% which is mainly due to institutional investments. Spearheading this growth, Grayscale now has over $ 9 billion in assets under management alone in its dedicated bitcoin trust. With a total of $ 10 billion held across all assets, the fund manager now controls over 500,000 bitcoins.
Institutional investors will also have increased their investment in other products offered by Grayscale especially trusts concerning ETH and Litecoin (LTC). Always according to the Digital Asset Management Review, another fund management structure specializing in digital assets, more specifically bitcoin, will also have contributed to this phenomenon. In Canada for example, 3iQ saw its yields increase by more than 49% during the month of October.
Bitcoin as a fundraiser for digital asset managers
In general, bitcoin’s ETP will have been the main responsible for the increase in volumes observed among digital asset managers. If the case of Grayscale is arguably the most publicized, the highest growth recorded in bitcoin FTEs is to be credited to ETC Group. Its BTCE product thus saw its percentage of assets under management increased 93% to $ 116 million.
First bitcoin ETP to be listed on the technology trading platform Xetra, the BTCE fund is currently recording average volumes of $ 8.87 million per day. Over the same period, another digital asset fund manager, namely WisdomTree, will also have drawn light on him. Its BTCW fund thus reached the total of $ 79 million, an increase of 65%.
Bitcoin continues to attract more crowds among this category of investors, the uptrend of the asset could continue to follow the same pace. In the meantime, the asset value is approaching even closer to its 2017 record.