Institutional-grade cryptocurrency investment product inflows have reached a record level of $4.2 billion so far in 2021, according to CoinShares. The new record smashes the previous quarterly record of $3.9 billion set in Q4 2020. Meanwhile, the year to date of Bitcoin saw the highest inflows at $3.3 billion with Ethereum at $731 million of inflows.
Cryptocurrency Inflows Up by 7.7% in 2021
Digital asset manager Coinshares’ March 15 Fund Flows Weekly report shows that the first quarter of 2021 inflows into up by 7.7% at $4.2 billion inflows.
The new record broke the previous quarterly high of $3.9 billion in the fourth quarter of last year. Crypto assets under management have also risen to $55.8 billion in comparison to $37.6 billion by the end of 2020.
These digital asset investment products saw a $242 million inflow, up 124% from $108 million from the previous week. By March 12, there was a $113.5 million inflow comprising almost 50% of the total.
Currently, there are five digital asset investment providers with over five billion dollars in assets under management, or AUM such as Grayscale, CoinShares, 3iQ, ETC Issuance, and 21Shares.
While Bitcoin remains the popular asset, Ethereum based investment products have also increased as the asset gets increased attention among institutional investors.
Bitcoin Trading Volumes on Exchanges is on the Rise
The report noted that Bitcoin trading volumes on trusted exchanges have been slightly above average at $11.8 billion per day in comparison to $10.8 billion per day on average for 2021.
Grayscale is still the largest digital currency manager, with $43.73 billion in assets, of which 84% of that is its popular Bitcoin Trust. Meanwhile, CoinShares is the second biggest digital asset manager that oversees nearly $5 billion in assets.
CoinShares reports further showed that investors prefer investment providers that simply track the price of digital assets, also called passive funds over those that have active management strategies.
For instance, passive funds have assets under management of AUM of $54.1 billion, compared with $786 million for those with active strategies.