Crypto investment managers had $62.5 billion in assets under management
at the end of 2021, with Bitcoin products attracting sizable
investments.
Institutional cryptocurrency funds attracted record inflows in 2021, as demand for digital assets such as Bitcoin (BTC) and Ether (ETH) continued to grow during a volatile and often unpredictable bull market.
Crypto
investment products registered $9.3 billion in inflows during the year,
up from $6.8 billion in 2020, according to the latest CoinShares data,
which was released on Tuesday. Bitcoin funds attracted $6.3 billion
worth of capital last year, while Ether products saw inflows totaling
nearly $1.4 billion. Multi-asset funds were also popular, attracting
$775 million in investor capital.
A total of 37 investment
products launched in 2021, compared with 24 that hit the market the year
before. Notably, crypto assets that were included in investment
products expanded to 15 from nine the previous year.
Grayscale
remains the single largest crypto asset manager with $43.5 billion in
assets under management as of Monday. Other multi-billion-dollar asset
managers included 3iQ, 21Shares, ETC Group, Purpose and ProShares.
Despite massive volatility, cryptocurrencies enjoyed broader mainstream recognition in 2021,
with both retail and institutional investors participating in the
market. 2021 was the year that crypto became a multi-trillion-dollar
asset class, putting it on the radar of fund managers and family
offices. Along the way, a slew of BTC exchange-traded products hit the
market, including the Purpose Bitcoin ETF in Canada, which offered North American investors spot exposure to the leading digital asset.
Related: Bitcoin open interest matches record high amid predictions of BTC price 'fireworks' this month
Regulators
in the United States would also approve several futures-linked Bitcoin
ETFs in 2021, opening the door to broader institutional adoption. The
Securities and Exchange Commission is expected to deliver its verdict on
a pair of physically-backed Bitcoin funds from NYSE Arca and Grayscale in early February.
source link : https://cointelegraph.com/news/crypto-funds-attracted-9-3b-in-inflows-in-2021-as-institutional-adoption-grew
