Capital has flooded into crypto investment products in recent weeks, with the value of assets invested into crypto exchange-traded products, or ETPs, increasing by more than 90% in the last 30 days.
The spike in the assets under management, or AUM, locked in crypto ETPs was noted in the latest report by Crypto Compare, which estimates that almost $36 billion is now invested in crypto ETPs — a 93.7% increase in one month.
Grayscale’s various trusts represent more than 83% of the sector’s total AUM, with the firm’s Bitcoin Trust housing $22.6 billion or 63% of all capital invested in crypto ETPs.
Crypto Compare estimates that ETP volumes tripled during January,with aggregate daily volume pushing above $1.5 billion. Grayscale’s products were found to represent 64% of the sector’s volume, driving $972 million in daily trade.
Aggregate monthly crypto ETP volume: Crypto CompareDespite Grayscale’s dominant share of trade volume, its products were found to have underperformed the spot markets as the historic premium on Grayscale’s shares fell by 8% during January.
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Trade volume for crypto Exchange-traded notes, or ETNs, nearly tripled over the month. ETC Group’s BTCE product dominated ETN volumes with nearly $50 million in daily trade — representing more than two-thirds of total ETN volume.
WisdomTree’s BTCW/USD was the second-most traded ETN with $7 million in daily volume after its trade activity increased more than 210%, followed by VanEck’s Bitcoin Vectors with $5 million — owing to a nearly 500% jump in volume .
Trading in exchange-traded certificates, or ETCs, more than doubled, with XBT Provider’s Bitcoin Tracker Euro and Bitcoin Tracker One products representing more than half of combined ETC volume — driving $45.6 million and $34.9 million in respective daily trade.
XBT provider’s Ether-derived products are the next-most popular ETCs, with Ether Tracker One and Ether Tracker Euro pushing $18.2 million and $17.8 million respectively.