Institutional Investors ETPs Generate Crazy Gains as Bitcoin Bull Run Continues
Bitcoin exchange-traded products (ETPs) floated by leading institutional investors such as Grayscale, which recently surpassed the $10 million AUM mark, Wisdom Tree, and others, have seen a massive increase in market capitalization and volume in the last 30 days thanks to the ongoing bitcoin (BTC) bull run, according to a CryptoCompare’s Digital Asset Management Review released on November 17, 2020.
Bitcoin ETPs Hit the Moon
As predicted by top analysts at the beginning of this year, 2020 is proving to be a great year indeed for the bitcoin price, as it is now on the verge of repeating the excellent feats achieved in 2017, thanks to increasing levels of adoption and influx of institution monies into the orange coin.
Since overcoming the March 11 flash crash dubbed black Thursday, which saw the bitcoin price crash to $3,800, the world’s flagship cryptocurrency has been on a steady rise, however, the real price surge has happened in the past few months.
According to the Digital Asset Management Review released by CryptoCompare, a leading cryptocurrency market data provider, cryptocurrency-backed exchange-traded products from the stables of top players in the industry has surged in both volume and market cap in the last 30 days.
Average Daily ETP Volumes Surge to Over $173 Million
Per the report, the November bitcoin price increase to $16,000 (currently trading at $18,175) moved up the aggregate volume of ETPs by 53 percent, rising from $113 million to $173.5 million; with the Grayscale Bitcoin Trust product market capitalization surpassing $9 billion, as it saw record BTC inflows from investors, while 3iQ’s Bitcoin Fund (QBTC) market cap now stands at $167 from just $100 million in October.
In the same vein, the report revealed that the bitcoin exchange-traded product of ETC Group, which hit $49 million in asset under management earlier in August 2020, saw a 93 percent surge in market cap in the past 30 days ($116 million), while WisdomTree’s BTCW saw a 65 percent increase to $79 million.
The firm wrote:
“3iQ’s Bitcoin Fund (QBTC-U) experienced the highest 30-day returns at 49.1 percent, followed by WisdomTree’s BTCW (39.1 percent) and Grayscale’s Digital Large Cap Fund (GDLC) experienced a 30-day loss of 20.6 percent over the last 30 days.”
While the excellent performance of Bitcoin and crypto ETPs are now putting smiles on the faces of investors, it’s worth noting that the U.S. Securities and Exchange Commission (SEC) still thinks the space is not mature enough to welcome its first ETF and it remains to be seen whether 2021 may just be the year the dreaded regulator has a change of heart.