Inflows into cryptocurrency products and funds increased by 36% in 2021 compared to the previous year, as institutional investors continued to gamble on digital assets despite market volatility and uncertainty.
The inflows grew from $6.8 billion in 2020 to $9.3 billion in 2021, despite the fact that the growth from 2019 to 2020 was 800%, according to CoinShares’ annual review of digital asset fund flows.
The total assets under management (AuM) expanding from $2.8 billion at the end of 2019 to $62.5 billion by the end of 2021 is also cited in the research as a key sign of the market’s growth.
In addition to increased volume, the number of cryptocurrency-based investment products has increased in the past year.
An increase
The total number of coins contained in investment packages, for example, increased from 9 to 15.
In addition, 37 investment items were introduced in 2021, compared to 24 in 2020, for a total of 132 investment goods.
In comparison to other digital asset investment products, those based on Bitcoin saw the slowest growth in inflows in 2021, rising from $5.4 billion to $6.3 billion, a year-on-year gain of only 16%.
Meanwhile, from $920 million at the end of 2020, inflows into Ethereum-based financial products more than quadrupled to $1.3 billion in 2021.
Despite these improvements, outflows from Ethereum-based products increased to $161 million in the final month of the year.
Outflows are decreasing
Despite strong increases in crypto investment products over the last year, 2021 ended with three weeks of outflows.
Despite maintaining the downward trend, outflows decreased in the final week of the year to $32 million, down from $86 million the week before.
Total withdrawals for the final three weeks of last year totaled $260 million, or 0.4% of AuM.
The first week of outflows brought a stop to a 17-week streak of inflows into digital asset investment products.
It was sparked by the US Federal Reserve’s announcement of a faster-than-expected tapering of asset purchases, which had a negative impact on all risk assets, not just crypto-based ones.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/crypto-and-fund-investment-inflows-climb-36-in-2021/
- $2.8 billion
- 2019
- 2020
- 9
- According
- All
- Announcement
- annual
- asset
- Assets
- Billion
- Bitcoin
- Coins
- content
- crypto
- cryptocurrency
- digital
- Digital Asset
- Digital Assets
- down
- example
- expanding
- Federal
- financial
- First
- fund
- funds
- goods
- Growth
- HTTPS
- Impact
- increased
- Institutional
- institutional investors
- investment
- Investors
- Key
- Market
- million
- months
- Other
- Products
- purchases
- research
- review
- Risk
- strong
- us
- Volatility
- volume
- week
- year
- youtube
