Statistics show that digital assets’ interest increases, especially since Bitcoin’s success, being the first cryptocurrency. The king coin paved the way for digital assets in the global community, which has led to growth in different parts of the industry. Experts predict the virtual asset seeing global adoption as some countries are creating Central Bank Digital Currency, which Bitcoin and other cryptos inspired.
While CBDCs are not very prominent, people believe that many countries would own and actively use the government-issued digital asset in years to come. The crypto space also saw new interests in exchange-traded products as charts show that they have increased in the past few months.
Exchange-traded platforms see a 50% increase in AUM
Bitcoin’s iconic surge from $20,000 to $40,000 inspired the growing hunger for more crypto products within a month. Grayscale already announced that it would add more digital assets to its investment portfolio as investors want to get exposure to other less-known assets.
The asset manager manages for mainly institutional investors and has grown with the digital asset industry over the years. The business recently celebrated its impressive AUM, meaning that new investors join the digital asset manager’s firm.
Cryptocompare, a data analyst crypto firm, shared that assets under management in exchange-traded platforms have skyrocketed. The firm shared that the platforms saw a 50% increase in assets in January, attaining the $46.6 billion peak. Many crypto service providers have recorded impressive changes as exchanges record higher volumes, leading to increased annual earnings.
Institutional buyers dominate the crypto industry
The most dominant buyers in the digital asset industry are the institutional buyers that have changed the industry for the better since their arrival. The institutional contribution led to the skyrocketing of assets like Bitcoin and Ethereum, which both performed impressively and have increased within the past few months.
Asides from Bitcoin’s growth in value, Canada also approved its first Bitcoin ETF, which Purpose would manage. The ETF is the first in the continent, and it recorded $83 million in trading volumes during the first hour after its launch.
The ETF would target mainly long-term investors, as the makers advised against short-term investors from taking part in the fund. Fortunately, the North American crowd can finally benefit from a Bitcoin ETF as no country in the region had approved any BTC ETF.
While Purpose’s Bitcoin ETF is the only one currently available in the continent, sources claim that others would soon bring the exchange-traded fund to the limelight.
Grayscale has one of the world’s most extensive crypto holdings, making its assets under management increase rapidly. The cryptocurrency saw a 50% growth in December/January, doubling Grayscale’s AUM for bitcoin. Ethereum has also been performing well, as the ETH fund under the asset manager saw a 100% increase.
Interestingly, even with the increased assets under management for exchange-traded platforms, most continue to see a decline in trading volumes. The decline could be due to the declining Bitcoin price, which has made many investors hold their assets till the crypto appreciates.
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