Institutional Crypto Investments Shoot Up in Q1 of 2021

The institutional flow of money into crypto and crypto-related products is on the rise. According to Coin Shares, a digital assets investment manager, the total amount of institutional funds in crypto hit a record $59 billion. Data from the investment manager also reveals that the number of crypto inflows in the first quarter rose sharply by $4.5 billion, compared to a similar quarter in 2020 when the inflows stood at $3.9 billion.

The data also reveals that most inflows were recorded in week one of April when it hit $106 million, which is 11% higher than a similar period in the past year. However, Coin Shares has also noted that there has been a slight slowdown in inflow, attributing it to normal market variations.

Overall, the inflow of institutional investment into crypto has focused mainly on Bitcoin and Ethereum. The inflow of cash into Bitcoin stands at $83 million, representing 78% of the total inflows. The rest of the money has gone into Ethereum or $20 million of the total inflows. Nonetheless, Bitcoin investments products are a small fraction of the total amount of crypto assets traded on exchanges. This is an indicator that there is still room for growth in this market.

This is most evident in the crypto assets under management that now stands at $59 billion. A considerable portion of this money is held by Grayscale, which has $46 million of crypto assets under management. Many others are coming up, such as Litecoin ETP, an institutional-grade investment product for the European market.

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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