Crypto funds see inflows of $8.9 billion so far this year

abdelaziz Fathi

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.

Read this next

Digital Assets

Himalaya Exchange customers seek release of frozen funds from DOJ

FormerFeds, a corporate defense and litigation service provider, has filed a lawsuit against the U.S. Department of Justice (DOJ) on behalf of over three and a half thousand Himalaya Exchange customers.

Digital Assets

Nubank, Circle, and Talos join forces for crypto adoption in Brazil

Nubank, the Brazilian neobank backed by Warren Buffett’s Berkshire Hathaway and Softbank Group Corp, announced new partnerships with cryptocurrency firms Circle and Talos.

Metaverse Gaming NFT

Flare onboards Ankr, Figment, Restake, and NorthStake as validators

Flare, an EVM smart contract platform known for its focus on blockchain data utility, has announced a major step in its development. The platform has onboarded leading infrastructure providers, including Ankr, Figment, Restake, and NorthStake.

Digital Assets

Sui Joins DeFi Leaders, Topping $100M in Bridged USDC

Sui, the groundbreaking Layer 1 blockchain created by the technology experts who led Meta’s Diem blockchain initiative and created the Move smart contract language, continues its explosive ascent in decentralized finance (DeFi). This week, it surpassed $100 million in bridged USDC. 

Digital Assets

Poloniex hit by UK regulator, listed as ‘unauthorised’ exchange

The UK’s Financial Conduct Authority (FCA) has added the cryptocurrency exchange Poloniex to its warning list of non-authorized companies. Poloniex, which is based in Seychelles, has experienced four hacks in the last two months and is affiliated with entrepreneur Justin Sun.

Industry News

Exclusive Markets is Proudly ISO/IEC 27001:2013 Certified by MSECB for Unparalleled Commitment to Information Security

Exclusive Markets, a leading name in the FINTECH sector, proudly announces the attainment of ISO/IEC 27001:2013 Certification by the MSECB. This esteemed certification highlights Exclusive Markets’ persistent commitment to fortifying information security within its cutting-edge trading technology. 

Digital Assets

SEC is discussing ‘technical details’ of Bitcoin EFTs ahead of approval

Discussions between the U.S. Securities and Exchange Commission (SEC) and asset managers seeking to list Bitcoin exchange-traded funds (ETFs) have reportedly advanced to key technical details.

Digital Assets

Versatus Labs Reaches $50 Million Valuation Following $2.3 Million Seed Funding Round

Versatus Labs, a peer-to-peer web services protocol aiming to help Web2 developers transition to Web3, has completed a $2.3 million funding round at a $50 million valuation led by key investors in the Web3 space including NGC Ventures and Republic Crypto. The latest funding round aims to help the company develop the ‘world’s first stateless roll-up’, Versatus LASR. This follows Versatus Labs’ recent pivot from Layer 1 solutions to Ethereum scaling solutions. 

Digital Assets

Binance ex-chief’s sentencing looms as court accepts his guilty plea

A U.S. district judge has accepted a guilty plea from former Binance CEO Changpeng Zhao (CZ) on charges related to anti-money laundering violations. The plea was accepted by Judge Richard Jones in the U.S. District Court for the Western District of Washington in Seattle.