Institutional buy buy buy! A record $9.3 billion in inflows to cryptocurrencies in 2021

Investing.com - 2021 set a record for inflows into cryptocurrencies as institutions poured in.

Inflows to cryptocurrencies in 2021 will hit a record high of $9.3 billion, up from $6.8 billion in the same period last year, according to new data released Tuesday by digital currency asset management firm CoinShares.

According to the report, Bitcoin attracted $6.3 billion in inflows, up 16 percent year-on-year, Ethereum attracted close to $1.4 billion in inflows, compared to $920 million in the same period last year, while multi-asset funds that invest in multiple cryptocurrencies attracted $7.75 billion. Inflows of USD 100 million, compared with USD 352 million in the same period last year.

The report also shows that Grayscale remains the world’s largest single cryptocurrency asset manager with $43.5 billion under management.

Despite the volatility of cryptocurrencies last year, the asset class is starting to find its way into the radar of fund managers, with a growing number of large institutional investors opting to invest in it. In the past year, including the world's first Bitcoin ETF - Purpose Bitcoin ETF (TSX:BTCC) and the first US Bitcoin futures ETF - ProShares Bitcoin Strategy ETF (NYSE:BITO) have been approved for listing, providing investors with Another way to invest in cryptocurrencies.