Institutional asset manager CoinShares, in its report published on August 9, estimated that exits total $26 million for this week. CoinShares also explains that exits have reached record highs. The 4 altcoin funds directed by the institutional investor and the updated data with all the details are as follows.
Demand for altcoin funds is increasing
As of August, it is observed that institutions continue to attract capital from Bitcoin investment products, while the demand and money flow to Ethereum and other altcoin projects draw attention. Institutional crypto products have recorded their fifth week in a row, despite Bitcoin’s recent momentum led by $46,000. On that matter, the CoinShares August Digital Asset Fund Flows Weekly report estimated outflows to total $26 million for this week. However, the report notes that compared to May and June, when exits rose to a record $141 million a week, exits decreased.
Meanwhile, despite BTC gaining 17.5% last week, Bitcoin funds lost $33 million during this period. CoinShares’ own BTC product, the owner of the report, was the biggest loser of the period with an outflow of $ 63.3 million, while the funds of Grayscale, the world’s largest crypto asset manager, remained stable. The combined value of assets managed by its funds exceeded $40 billion for the first time since mid-May, according to the company’s latest update on Aug.
Ethereum-based investment products are on the rise
In this period when BTC funds were down, Ethereum-based investment products saw $2.8 million inflows during the week after the London hard fork. Additionally, Ether now represents 26% of capital invested in institutional crypto products. On the other hand, there have been small inflows for some altcoin funds, including XRP, Bitcoin Cash, Cardano, and multi-asset funds, each seeing inflows of between $1.1 million and $800k. CoinShares also noted that 2021 saw a record 37 new crypto funds launched so far, surpassing the 30 crypto funds launched in 2018:
We’ve seen the number of listed fund/investment products accelerate recently, with a record 37 released this year compared to the previous high of 30 seen in 2018. ”
Finally, Cryptocoin. com, with the current momentum of the cryptocurrency market, the combined assets under management (AUM) of all institutional crypto products exceeded $50 billion, the highest level since mid-May. CoinShares also released its financials for the first half of 2021 and announced total revenue as $81.2 million. That’s why CoinShares tripled what it earned in all of 2020 in the first half of this year. As of June 30, 2021, CoinShares’ total AUM was $3 billion, up 27.6% from the end of December 2020.