MV Index Solutions (MVIS) and leading cryptoasset data provider CryptoCompare have announced that products licensing their co-branded indices, have surpassed $1 billion in assets under management.
In a press release shared with CryptoGlobe, both firms point out the milestone represents “the huge growth in demand amongst institutional investors” for products that provide them with exposure to cryptoassets. Demand for index services, it adds, has been global and products launched in markets across Europa, Asia, and America.
Last year, MVIS launched four new indices supporting the growing cryptocurrency space, including one to measure the performance of a digital assets portfolio investing in BTC, one for Etheruem, one measuring the performance of a portfolio investing in bitcoin with a closing value based on a 1h volume weighted-average price, and one tracking the performance of the 25 largest and most liquid cryptoassets.
Steven Schoenfield, CEO of MV Index Solutions, said that as the cryptocurrency space evolves, the use of benchmarks “will continue to expand, and become even more essential.” Quynh Tran-Thanh, CryptoCompare’s Chief Product Officer, said:
We are very excited to reach this milestone and it is a clear signal that the demand for digital assets is booming. In 2021 we will continue our mission to provide best in class indices built from ultra-reliable pricing data with our partner MVIS.
Institutional interest in the cryptocurrency space has now been well-document. As reported, the assets under management across all cryptocurrency exchange-traded products (ETPs) surged to nearly $36 billion earlier this year, with aggregate ETP trading volumes almost tripling this month.
Average daily trading volumes, now stand at $1.51 billion compared to $516.8 million in December 2020. ETP activity is relevant as it may be the “best bellwether of institutional investor demand,” since these products may be the only way highly regulated investors gain exposure to cryptoassets.
Corporate adoption has also been growing, with Nasdaq-listed business intelligence firm MicroStrategy leading the charge. The company has invested $1.135 billion to buy 70,784 BTC, which are now worth $2.236 billion. Square, Galaxy Digital, Ruffer Investment, One River, and recently Marathon have also invested in BTC.
In total, a website tracking these investments estimates organizations including bitcoin funds have bought up 1.21 million BTC.
Featured image via Pixabay.