Crypto funds see inflows of $8.9 billion so far this year
Inflows last week into bitcoin and other crypto-based investment products were at $147 million, pushing the total inflow over the last two weeks to $435 million, according to the latest figures from CoinShares.
Cryptocurrency funds and products have amassed inflows of $8.9 billion so far this year, significantly greater than the $6.7 billion seen in 2020.
This pushes the sector’s assets under management to $90 billion. The impressive data, which marks the 12th consecutive week of inflows, comes amid a remarkable bull run for cryptocurrencies that have seen Bitcoin eclipse $66,500, just a shy of its $67,016 record high. Crypto advocates argue that the recent recovery is the beginning of a major bull run that could see bitcoin blast past the $100,000 level before the end of 2021. The world’s largest, and most recognized, cryptocurrency hit as low as $30,000 in July.
Breaking down the latest statistics, Coinshares said Bitcoin inflows totaled $95 million last week representing the largest inflows of all digital assets. A record-setting $269 million of capital flows was invested in funds offering exposure to Bitcoin in the third week of October, following the US SEC permitting a Bitcoin futures ETF decision. Marking a long-awaited milestone for the crypto industry, ProShares Bitcoin Strategy ETF began trading under the ticker symbol “BITO.”
Inflows in this 8-week bull-run now total $2.8 billion with year-to-date inflows now at a record $6.4 billion.
Outsized investments were also seen in Ethereum investment products, with inflows coming in at $31 million last week. Ethereum’s market share has suffered in recent months due to Bitcoin’s dominance, but the recent combination of price gains and inflow has seen their AuM rise to a record $20 billion. As a result, Ethereum now represents 32% of the capital locked in crypto investment products.
“Altcoins remain popular with markable inflows from Polkadot, Solana and Cardano totalling US$9.6m, US$8.5m and US$5m respectively. Polkadot inflows last week represent the largest weekly on record,” Coinshares states.
Coinshares already operates publicly traded crypto exchange-traded-notes (ETNs), which are regulated by the Swedish FSA. The company says they offer retail investors more ‘familiar channels’ to invest in the growing digital asset economy.
The firm states it plans to expand in other jurisdictions. However, it still has a lot of work to do regarding dealing with regulators investigating digital assets.