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Institutional Bitcoin products tag record AUM despite volume pulling back

Institutional traders have locked a record sum of wanted into Bitcoin investment products despite trade volume unthriving during the second half of 2021.

According to CoinShares’ Nov. 15 “Digital Windfall Fund Flows Weeklyreport, Bitcoin (BTC) investment products saw total inflows of $97.5 million between Nov. 8 and Nov. 12 — pushing the sector’s resources under management (AUM) up to a record $56 billion. Year-to-date (YTD) inflows moreover tagged $6.5 billion last week.

Bitcoin instruments represented 64.6% of the $150.9 million that flowed into digital windfall investment products last week. While the record AUM coincided with BTC establishing a new all-time high of roughly $69,000 on Nov. 10, the markets have since pulled back by 10% to last trade hands for $62,100.

Despite CoinShares noting that digital windfall investment products have seen inflows for 13 subsequent weeks, the sector has posted “subdued volumes” during the latter half of 2021.

According to the report, daily volumes have averaged at $750 million during the second half of the year — a 22% retracement compared to $960 million during H1 2021.

While Ethereum saw the strongest weekly inflows among altcoin-tracking products with $17.3 million, the icon marked a 44% ripen week-over-week for the windfall class. Despite volume drying up, CoinShares reports a record AUM of $21 billion for Ethereum products while the price of ETH posted record highs near $4,900 on Nov. 10

Cardano (ADA) ranked as a tropical second, taking in $16.4 million to post a 227% increase in weekly inflows. CoinShares said that it was unable to “identify a discernible catalyst” driving the surging investment into Cardano funds.

Institutional traders have locked a record sum of wanted into Bitcoin investment products despite trade volume unthriving during the second half of 2021.

Related: Bitcoin has stalled, but here’s why pro traders still expect $80K by January

The price of ADA moreover experienced a significant vellicate this week, moving from virtually $2.00 on Nov. 8 to virtually $2.36 on Nov 10. However, Cardano’s price tumbled when lanugo to $2.11 on Friday. ADA is still lanugo 46% from it’s September all-time upper of $3.09.

Solana (SOL), Polkadot (DOT) and Ripple (XRP) investment products moreover saw inflows of $9.8 million, $5.2 million and $3.1 million respectively for the week.

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