By Gertrude Chavez-Dreyfuss
NEW YORK, March 16 (Reuters) – Inflows into cryptocurrency funds and merchandise have already hit a document $4.2 billion for the primary quarter, reflecting rising institutional investor curiosity, CoinShares knowledge confirmed.
The earlier excessive for crypto inflows was $3.9 billion within the fourth quarter of final yr, driving complete inflows for 2020 to $6.7 billion, the asset supervisor’s knowledge reveals.
Bitcoin, the world’s largest cryptocurrency when it comes to market capitalization, has had probably the most inflows to this point this yr with $3.3 billion, whereas ethereum was second with $731 million.
Bitcoin hit a document excessive of $61,781.83 on Saturday, however has fallen since then as traders consolidated features and amid plans by India to ban cryptocurrencies.
“As bitcoin strikes into the mainstream and captures better consideration, it’ll probably draw additional scrutiny from regulators in the USA and Asia,” Jesse Cohen, senior analyst at Investing.com, mentioned.
On Tuesday, the digital foreign money was at $55,415.
“The potential for extra scrutiny and tighter regulation stays the largest headwind for bitcoin,” Cohen added.
Crypto property beneath administration have additionally surged to a peak of $55.8 billion, CoinShares knowledge confirmed. Final yr, AUM for the sector reached $37.6 billion. 5 digital asset funding suppliers now oversees property of greater than $5 billion.
Grayscale continues to be the most important digital foreign money supervisor, with $43.73 billion in property, whereas CoinShares, the second greatest, oversees practically $5 billion in property.
CoinShares’ evaluation additional confirmed traders proceed to decide on funding suppliers that merely monitor the value of digital property, so-called passive funds, over those who have lively administration methods.
Passive funds have AUM of $54.1 billion, in contrast with $786 million for these with lively methods. (Reporting by Gertrude Chavez-Dreyfuss; Modifying by Alexander Smith)