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Bitcoin Investment Hit New Highs

According to the asset management firm, investors have put a record of $1.3B in cryptocurrency funds last week.

Bitcoin, along with other cryptocurrency funds, just had a record-setting week, according to data from asset management firm Coinshares.

Coinshares takes stock of its performance against other crypto investment firms like Grayscale, 3iQ, and 21Shares, by looking at how much money customers are streaming into funds. From the previous week, inflows across all funds have been tracked by the report, and it reached $1.3B – a new weekly-high.

Grayscale is still the number one in crypto investment products, with around $26B in assets under management or AUM. Around $21.6B of it is in the Grayscale Bitcoin Trust (GBTC) – a kind of investment vehicle that gives Bitcoin exposure for investors wanting to avoid the hassle of trading and custody.

Coinshares sealed up last week’s inflows to the performance of Bitcoin in the past few months; 97% of the $1.3B was in Bitcoin-related investment products.

However, the report also suggests that investment products and funds represent a smaller fraction of the total Bitcoin trading volume:

“Despite the record inflows, investment products have not tested the liquidity of the underlying Bitcoin, with investment products representing only 6.5% of total Bitcoin trading turnover. So far this year volumes in Bitcoin have been considerably higher, trading an average of $12.3 billion a day compared to $2.2 billion in 2020.”

One reason that more people are trading Bitcoin this year has something to do with the price. After creating a new all-time high of around $41,000 early this month, it is settled down to around $32,000 – by this time last year and Bitcoin was worth only around $8,000.

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