Institutions remain bullish on Cardano and Ether while BTC outflows persist

August 31, 2021 Coin Telegraph

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Ethereum and Cardano continue to dominate inflows to institutional crypto investment products while demand for BTC weakens.

Institutional inflows to altcoin investment products have continued to increase this past week, but the same cannot be said for Bitcoin.

In its Digital Asset Fund Flows Weekly report on Aug. 30, institutional asset manager CoinShares identified overall inflows of $24 million to altcoin-based investment products. The capital flows mark the second consecutive week of inflows to altcoin funds, with investments into altcoin products increasing by 14.3% compared to last week’s $21 million.

Ether was the favored asset among institutional investors, with ETH-based products posting a weekly inflow of $17.2 million. The report noted that products tracking Ethereum and other altcoins now represent 32% of the sector’s total assets under management (AUM) — just 3% shy of mid-May’s record of 35%.

Cardano-based institutional funds posted record weekly inflows with $10.1 million, representing 32% of the week’s total altcoin inflows. Cardano-based instruments now hold 0.15% of the capital locked in crypto investment products combined.

The surge in Cardano inflows is attributed to anticipation for its Sept. 12 "Alonzo" upgrade which will see the project launch smart contract functionality for the first time.

Polkadot and Solana-based funds also saw inflows with $1.5 million and $2.7 million respectively. Solana has now surpassed Bitcoin Cash for assets under management in related funds with $16 million, ranking ninth in terms of AUM with BCH funds in tenth.

Despite the bullish momentum surrounding altcoins, the report noted that Bitcoin products continue to see outflows, with a loss of $3.8 million for the period. As such, Bitcoin products have posted outflows for 14 of the past 16 weeks.”

CoinShares estimates that institutional asset managers currently represent an AUM of $56.8 billion combined — attributing the slight week-over-week drop in sector-wide AUM to persistent outflows from Bitcoin-based products.

Looking at the performance of fund issuers, CoinShares’ own Bitcoin fund saw the heaviest losses this past week with an outflow of $14.5 million. ETC Issuance saw the largest inflow at $14.1 million.

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Record first quarter for institutional crypto investment products: CoinShares

April 7, 2021 Coin Telegraph

Coin Telegraph

Assets under management for institutional funds have hit a record high of $59 billion.

According to digital asset investment manager CoinShares, the first quarter of 2021 hit a new record for institutional crypto product inflows.

As reported in CoinShares’ Tuesday “Digital Asset Fund Flows Weekly” bulletin, Q1 of this year hit a new record with $4.5 billion in inflows compared with $3.9 billion in the final quarter of 2020.

It added that inflows for the past week recorded, which ended on Friday, totaled $106 million, helping push the total for the three-month period 11% higher than the previous quarter. The inflow was down on previous weeks, however, as the week ending March 12 recorded a $242-million inflow.

While institutional inflows have slowed, CoinShares believes it is not indicative of a broader slowing trend, as quarterly growth rates tend to be varied.

Inflows for the past week have been dominated by $83 million in Bitcoin (BTC) products, or 78% of the total, and $20 million in Ether (ETH). Overall volumes for Bitcoin investment products comprise a relatively small share of 6.7% of the total trading volume for regulated or “trusted” cryptocurrency exchanges.

Assets under management for both active and passive crypto investment products are at an all-time high of $59 billion. Grayscale makes up the lion’s share of this 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 has expanded its institutional products this week with the introduction of a physically backed Litecoin exchange-traded product. The new CoinShares investment product will be initially listed on Switzerland’s regulated crypto exchange, SIX Swiss Exchange.

The Litecoin (LTC) ETP is the third institutional-grade product the firm has launched in 2021. It follows a physically backed Bitcoin ETP launched in January and a similar one for Ether in February.

On Thursday, Cointelegraph reported that CoinShares had entered a partnership with Canadian investment fund manager 3iQ in order to launch a Bitcoin exchange-traded fund in Canada.

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

institutional funds