News: Digital assets in exchange-traded products double in February to $44 billion: CryptoCompare.
LONDON (Reuters) – Digital assets under management for exchange-traded products doubled this month to a record $ 43.9 billion, researcher told CryptoCompare on Friday, underscoring the growing interest in securities that track digital currencies.
Bitcoin is up over 60% this year, hitting an all-time high of $ 58,354 this month as mainstream companies like Tesla Inc and Mastercard Inc introduced cryptocurrencies.
Still, the daily trading volume for all types of exchange-traded products with cryptocurrencies fell 38% to $ 936 million in February, according to CryptoCompare in a research report.
Institutional investors seeking exposure to digital assets are likely to turn to the growing number of regulated crypto products that can be traded on traditional exchanges and eliminate the headache of holding digital currencies securely.
New York’s Grayscale, whose Bitcoin Trust saw massive inflows due to increased interest in cryptocurrencies, now manages nearly $ 33 billion and makes up the bulk of its digital assets under management.
Canada’s Purpose Bitcoin ETF was the world’s first exchange-traded fund this month to be physically settled in cryptocurrency. The country’s wealth managers rushed to launch their own Bitcoin ETFs.
Reporting by Tom Wilson; Adaptation by Frances Kerry
Original Source © Reuters