Assets under management in all ETPs are on the rise for institutional investors becoming more interested in Bitcoin.
The Crypto ETPs industry is flourishing: assets under management or AUM across all ETPs have shot up to 95% since December to $35.96B, a report released today stated.
CryptoCompare, a crypto research firm, showed their report named “The Digital Asset Management Review” report. It shows that most AUM for ETPs belongs in the Grayscale Bitcoin Trust or GBTC – which heightened its AUM by 93.7% in the past 30 days to $22.6B.
Exchange-traded products of ETPs track the value of an underlying asset – similar to stocks. Bitcoin or crypto ETPs allow people or companies to invest without literally holding the asset by themselves.
As Bitcoin and altcoins’ prices have increased, more people have become interested in investing in the asset – particularly the institutional investors, a company that invests on behalf of others.
They are profitable for those who do not want to worry about handling Bitcoin or Ethereum but are still interested in investing.
The report of CryptoCompare says that these regulated products are becoming even more available than previously.
“These products make it easier for investors because they can be traded on traditional stock exchanges, with the complexities of custody and storage abstracted away from the end-user,” the report states.
Crypto ETP volumes almost tripled this first month of the year, CryptoCompare notes, it is now around $837M each day. Keeping in mind that GBTC is the most significant player, representing almost – 64% in particular – of this trading volume.
The report added that AUM in Grayscale’s Ethereum Trust (ETHE) was up to 69.4% to $3.47 B.
The 3iQ Listed Trust Product or QBTC is the best performing Bitcoin product by market price in the last 30 days – it increased to 91.3%.
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