Cryptocurrencies Show 36% Jump in 2021 Inflows Led by Bitcoin and Ethereum

Cryptocurrency products and funds saw a 36% increase in inflows in 2021 over the previous year, as institutional investors continued to bet on digital assets amid price volatility and uncertainty throughout. year round. Inflows grew from $ 6.8 billion in 2020 to $ 9.3 billion in 2021, even as growth from 2019 to 2020 was significantly higher at 806%, the digital asset management company said. CoinShares in its annual summary of digital asset fund flows.

“We believe this represents a mature industry, with Total Assets Under Management (AuM) ending the year at $ 62.5 million in 2021 compared to just $ 2.8 billion at the end of 2019,” said wrote James Butterfill, investment strategist at CoinShares, in the report Tuesday. Bitcoin had the maximum share of assets under management at $ 39.7 billion, while 2021 inflows were $ 6.3 billion, with annual growth of 16% compared to $ 5.4 billion in 2020.

However, Bitcoin experienced the lowest inflow growth compared to other digital asset investment products in 2021. For example, Ethereum grew 50% from $ 920 million to $ 1.3 billion. dollars, although in the last wave of negative feelings he had four weeks of going out. totaling $ 161 million. Among other assets, Binance AUM saw a 2,500% jump from $ 1 million to $ 26 million while Litecoin jumped 77% from $ 77 to $ 93 million. Ripple also jumped 1160%, from $ 5 million to $ 63 million.

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The crypto market cap jumped nearly 300%, from $ 763 billion at the start of 2021 to $ 3 trillion in November before falling to $ 2.2 trillion at the end of 2021, prices of several cryptocurrencies that fell from record levels during the year. According to data from Coinmarketcap.com, Bitcoin went from almost $ 69,000 to $ 46,000, while Ethereum went from $ 4,800 to $ 3,600 and Binance Coin went from $ 675 to $ 511, among others in 2021.

CoinShares noted that the total number of coins in bullion product form increased from nine to 15. In addition, 37 bullion products were launched in 2021 compared to 24 in 2020. The total number stood at 132. indicating the demand and popularity of digital assets.

Importantly, as the final week of 2021 saw outflows of $ 32 million in the third week, the trend suggested a decrease in outflows after the record weekly outings in mid-December. Cash outflows during the week of Dec. 13 totaled $ 142 million, first after a 17-week run of inflows and the largest weekly outflow on record.