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August 16, 2024 Bitcoin.com

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$27 trillion AUM is perched over Bitcoin and crypto: CoinShares CSO

June 27, 2023 Coin Telegraph

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The top eight financial institutions with an interest in Bitcoin and crypto have a whopping $27 trillion in combined assets under management.

There is at least $27 trillion of assets managed by major U.S. financial institutions that are also “actively” seeking to provide clients with exposure to Bitcoin (BTC) and crypto.

On June 26, CoinShares chief strategy officer Meltem Demirors highlighted at least eight major financial institutions that have signaled moves in the digital assets space, including BlackRock’s spot Bitcoin ETF filing and Fidelity’s crypto wealth management solutions.

Others include JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America.

“Many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more,” she noted, adding that there is a whopping $27 trillion in assets under management between them.

1/ last week's @BlackRock spot Bitcoin ETF filing was big news!

but, it's not the only story. many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more.

a quick glance - $27 trillion of client assets here! pic.twitter.com/azmHZmUL2a
— Meltem Demirors (@Melt_Dem) June 26, 2023

Earlier this month, BlackRock’s June 16 spot Bitcoin exchange-traded fund application led to a wave of filings for similar products, boosting a narrative that suggests “institutions are coming” for Bitcoin.

BTC price reached a 2023-high of $31,185 on June 24 amid surging confidence, according to CoinGecko.

Demirors however noted that while "the institutions are coming,” it’s still more of a trickle than a wave. "We're seeing the bridges being built in real-time," she added.

It should be noted that the $27 trillion figure is an estimation of the total assets under management across the eight institutions and only a tiny portion of this would likely be allocated to crypto investments.

Nevertheless, Reflexivity Research co-founder, Will Clemente, still echoed Demiror’s sentiment, pointing out that Bitcoin’s market capitalization is less than $600 billion.

“Between HSBC, Blackrock, Fidelity, and Schwab we are talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”

Institutional investors are already showing more interest in Bitcoin-related funds. The ProShares Bitcoin Strategy ETF (BITO) saw its largest weekly inflow for a year pushing AUM over $1 billion, as reported by Cointelegraph.

Earlier this week, Federal Reserve Board of Governors member Michelle Bowman criticized the absence of a crypto regulatory framework claiming that the uncertainty over the asset class traps institutions in a “supervisory void.”

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

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April 15, 2023 Bitcoin.com

FTX crisis leads to record inflows into short-investment products

November 22, 2022 Coin Telegraph

AUM

The aftermath of FTX’s collapse has soured crypto investor sentiment with "record” inflows into short-investment products last week, said CoinShares.

Institutional investors have responded to the negative sentiment caused by FTX’s collapse, with record institutional inflows into crypto-focused short-investment products.

According to CoinShares’ chief strategy officer James Butterfill, 75% of the total inflows by institutional crypto investors for the week ending Nov. 18 were placed in short investment products — essentially a bet that crypto prices will decline.

Butterfill said the takeup of short positions by investors is likely “a direct result of the ongoing fallout from the FTX collapse,” while the total assets under management (AUM) for institutional investors is now at $22 billion — the lowest in two years.

Over the week, $14 million was poured into short-ETH investment products. CoinShares said it was “the largest weekly inflow on record.”

CoinShares cited “renewed uncertainty” over Ethereum’s Shanghai upgrade slated for Sep. 2023 and mentioned that the sizeable amount of ETH held by the FTX exploiter as possible reasons for the negative sentiment.

Inflows into short investment products for Bitcoin (BTC) hit $18.4 million. Bitcoin short products were reported to have an AUM of $173 million coming close to the $186 million high.

Investors are also seemingly dropping altcoins with Solana (SOL), XRP (XRP), BNB (BNB), and Polygon (MATIC) product outflows totaling $6 million.

The newly reported inflows are a slight change from the week prior which saw the largest inflows in 14 weeks to crypto products totaling $42 million, although short Bitcoin products already started to see inflows of $12.6 million and blockchain equity products recorded the largest weekly outflow since May 2022.

Meanwhile, the ripple effect of investor distrust for centralized exchanges is taking hold in the traditional finance market with Coinbase posting an all-time low share price on Nov. 21.

The crypto exchange’s share price dropped 8.9% on the day, slipping to under $41 according to Google Finance. It has now slightly recovered to around $41.20 at the time of writing but continued to trade at a slight 0.19% negative after hours.

Coinbase’s stock price is down almost 88% since it went public on Apr. 16, 2021.

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