According to CoinShares data, inflows into cryptocurrency funds and products have already reached a record $4.2 billion for the first quarter of the year. This trend reflects the growing institutional investor interest.
Based on the asset manager’s data, the earlier record high for crypto inflows was $3.9 billion in the fourth quarter of 2020. This drove total inflows for 2020 to $6.7 billion.
The dominant cryptocurrency in the world in terms of market cap, Bitcoin, has had the most inflows so far in 2021 with $3.3 billion. Meanwhile, the world’s second-largest cryptocurrency, ethereum, was second with $731 million.
The most popular cryptocurrency, BTC, reached a lifetime high of $61,781.83 on March 12. However, it has dropped since then as investors consolidated gains and amid plans by India to forbid cryptocurrencies.
According to a senior analyst at Inveting.com, Jesse Cohen, BTC is moving into the mainstream to capture greater attention. He goes on to note that will likely draw further scrutiny from regulators in the United States and Asia.
Significantly, at the moment of writing, the digital currency stands at 54,981.
Furthermore, Cohen added that the potential for more scrutiny and tighter regulation remains the biggest headwind for BTC.
Additionally, it’s essential to mention that crypto assets under management have also boosted to a lifetime high of $55.8 billion, as CoinShares data revealed. In the 2020 year, AUM for the sector hit $37,6 billion. Five digital asset investment providers now has assets of more than $5 billion.
Grayscale is still the most prominent digital currency manager, with $43.73 billion in assets. Meanwhile, CoinShares, the second biggest, oversees approximately $5 billion in assets.
Moreover, CoinShares’ analysis revealed investors resume choosing investment providers that track the price of digital assets, so-called passive funds, over those that have active management strategies.
Remarkably, passive funds have an AUM of $54.1 billion, compared with $786 million for those with active strategies.
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