On May 20, cryptocurrency asset management company CoinShares announced a record trading day for their ETPs. Trading on May 19 nearly hit $500 million, amid a major spike in market volatility this week. The previous record high for CoinShares was on Feb. 22, 2021, when trading volume hit $252 million.
An official announcement from CoinShares stated that two of the company’s ETPs — XBT Provider ($3.9 billion assets under management (AUM) and CoinShares Physical platform ($367 million AUM) — saw trading volumes that exceeded $490 million on Wednesday. The figures are most surprising because they come in the middle of a significant dip in the crypto market.
Investors are embracing crypto ETPs
According to CoinShares Weekly Asset Fund Flows Report, $312 million of the activity, or around 63%, was in ethereum (ETH) exposure. The remaining $179 million, or 37%, was comprised of bitcoin (BTC), litecoin (LTC), and XRP exposures.
Before the dip, however, the crypto market cap hit a record high of $2.6 trillion, earlier in May. Also, earlier in the week, CoinShares released its weekly digital asset fund flow report. The report focused on a significant jump in bitcoin-related outflows, with BTC investment products experiencing an outflow of nearly $100 million.
After the recent crash, the total market cap dove as low as $1.4 trillion, also on Wednesday. As of this writing, the crypto market cap is around $1.65 trillion. With nearly $500 million in CoinShares’s ETPs on the move in a single day, the publicly listed company under the CS ticker earned the highest volume traded of any European crypto ETP.
In the official announcement, and amid the current crypto crash, CoinShares stated that global investors are embracing crypto ETPs more and more. The firm highlighted a number of major milestones of its ETPs in the last few years. One such milestone was their crypto ETPs growing to over $5 billion in AUM in April.