Digital asset investment products hit record $4.2B inflows already this quarter

Institutional-grade crypto-asset investment item inflows have already reached record peaks in 2021, according to CoinShares, a digital asset investment manager.

According to Coinshares’ Fund Flows Weekly survey dated March 15, first-quarter inflows into cryptocurrency funds are up 7.7% to $4.2 billion, smashing the previous quarterly peak of $3.9 billion set in Q4 2020.

Grayscale, CoinShares, 3iQ, ETC Issuance, and 21Shares are the five digital asset investment companies with over a billion dollars in assets under administration, or AUM. According to the survey, the recently founded Purpose Bitcoin fund is in the sixth position with $517 million in AUM.

Following the week’s bullish market activity, crypto-asset investment funds closed on Friday, March 12 with a record $55.8 billion in assets under control, according to the survey. These investment product types saw a $242 million inflow, up from $108 million the previous week by 124 percent.

According to cointelegraph.com, although Bitcoin remains the most common asset, funding is pouring into Ethereum-based investment products as the asset gains momentum among institutional investors. The week ended March 12 saw a $113.5 million inflow, accounting for nearly half of the amount.

According to the report, multi-asset funds are in third place, with a reported weekly inflow of $3.6 million and a total AUM of $2.3 billion. The only digital asset products with a fall in inflows for the week were those focused on Ripple, which had a million-dollar outflow.

Bitcoin trading rates on trusted exchanges have been slightly above normal, at $11.8 billion a day, compared to $10.8 billion a day on average in 2021, according to the report.