Crypto ETP capitalization up 90% this month as institutional volume triples

Institutional investors have rallied around crypto this past month, with the AUM of crypto ETPs surging more than 90% as volumes tripled.

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.

Despite 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.

The AUM of Grayscale’s Litecoin Trust grew 111% to tag $3.84 billion last month, sitting roughly 10% greater than the $3.47B managed by its Ethereum Trust.

Less well known funds also saw significant growth, including 3iQ’s Bitcoin Fund which saw a 43% jump in AUM to $3.47B.

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.