News: Cryptocurrency inflows hit record high of $4.2 billion, CoinShares says.
NEW YORK (Reuters) – Inflows into cryptocurrency funds and products have already hit a record $ 4.2 billion in the first quarter. This reflects growing interest from institutional investors, as CoinShares data showed.
The previous high for crypto inflows was $ 3.9 billion in the fourth quarter of last year, bringing total inflows to $ 6.7 billion for 2020, according to the wealth manager’s data.
Bitcoin, the world’s largest cryptocurrency by market capitalization, saw the most inflows this year at $ 3.3 billion, while Ethereum was second at $ 731 million.
Bitcoin hit a record high of $ 61,781.83 on Saturday but has since declined as investors consolidated their profits and India was under a plan to ban cryptocurrencies.
“If Bitcoin moves into the mainstream and attracts more attention, it will likely receive further scrutiny by regulators in the US and Asia,” said Jesse Cohen, senior analyst at Investing.com.
On Tuesday, the virtual currency was $ 55,415.
“The potential for more control and tighter regulation remains the biggest headwind for Bitcoin,” added Cohen.
Crypto assets under management have also soared to a high of $ 55.8 billion, according to CoinShares data. Last year, the AUM for the sector reached $ 37.6 billion. Five digital asset investment providers now oversee assets greater than $ 5 billion.
Grayscale remains the largest digital currency manager with $ 43.73 billion in assets, while CoinShares, the second largest, manages nearly $ 5 billion in assets.
CoinShares’ analysis also found that investors continue to choose investment providers that only track the price of digital assets, called passive funds, versus those with active management strategies.
Passive funds have an AUM of $ 54.1 billion, compared to $ 786 million for those with active strategies.
Reporting by Gertrude Chavez-Dreyfuss; Adaptation by Alexander Smith
Original Source © Reuters