The Sweden-based XBT provider Coinshares saw roughly $202 million in XBT certificates swap hands on the marketâ€™s first day of trading in 2021. Meanwhile, on the same day, the bitcoin exchange-traded product BTCE saw $100 million in trade volume.
Coinshares Group is a European firm dedicated to crypto-finance and exchange-traded products. The bitcoin exchange-traded note (ETN) provider is approved by the Swedish FSA and the firmâ€™s digital currency ETNs are traded on Nasdaq Nordic in Stockholm.
On the marketâ€™s first day of trading in 2021, Coinshares says the firmâ€™s bitcoin certificates saw $202 million in volume shattering previous records. â€œCoinshares had the highest volume traded in any European listed crypto ETP,â€� the company said.
Frank Spiteri, Coinsharesâ€™ Chief Revenue Officer explained that the firm has seen colossal demand and much of it stems from the ranks of institutional investors.
â€œWe are seeing an unprecedented volume of interest in bitcoin from institutional investors,â€� Spiteri detailed. â€œAs wealth managers, private banks, and European institutions look to add Bitcoin to their portfolios, our ETPs are the logical choice.â€�
In addition to the $202 million in daily turnover, Coinshares also has $2.9 billion in assets under management (AUM). Jean-Marie Mognetti, Coinsharesâ€™ CEO says the company has seen a transformation during the last six months.
â€œThe narrative shift around bitcoin over the last six months has been profound. Investors used to consider it a risk to allocate to bitcoin. Now itâ€™s a risk not to allocate to bitcoin,â€� Mognetti added.
Alternate investment opportunities from companies like Coinshares, ETC-Group, Grayscale, and more allow investors to gain exposure to bitcoin without holding the asset directly.
This week the ETP provider, ETC-Group, also saw record numbers for the start of 2021 for BTCE, the firmâ€™s exchange-traded product that trades on Deutsche Boerse (XETRA). BTCE saw record trade volumes of over $100 million on January 4. BTCE also has roughly $350 million AUM after launching back in June 2020.
â€œBitcoin has seen phenomenal interest as the price has increased from $20,000 in mid-December to $31,000 yesterday,â€� Maximilian Monteleone, head of business development at ETC-Group said. â€œInvestors seem to be moving into bitcoin because of concerns around major currency devaluation as a result of massive stimulus packages being tabled by governments in response to the COVID crisis.â€�
What do you think about the record volumes for bitcoin exchange-traded products? Let us know what you think about this subject in the comments section below.
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