Inflows last week into Bitcoin and other crypto-based investment products were at $425 million, pushing the total inflow over the last two weeks to over $706 million, according to the latest figures from CoinShares.
Cryptocurrency funds and products have amassed inflows of $5.24 billion so far this year. This pushes the sector’s assets under management to $14.5 billion despite the economic shock of the coronavirus pandemic.
Institutional investors in the weak earlier pumped $429 million into, the second-highest on record.
Trading turnover in digital currency products has reached the highest point since late 2017, reaching a peak of $500 million per day over the last month.
“This high turnover is closely correlated to the Bitcoin price testing all-time highs, implying some are using this as an opportunity to take profits despite the net inflows indicating continued bullish sentiment,” Coinshares states.
Throughout 2020, New York-based Grayscale Investments, the world’s largest crypto-fund manager, saw $4.6 billion in YTD inflows, its best year ever.
Bitcoin and associated investment products attracted $264 million in new investment last week. Notably, BTC remains the most popular investment vehicle. However, this figure was lower than the $334.7 million it attracted in the week prior.
Ethereum Investment Shine
Outsized investments were seen in Ethereum investment products, making up 37% of inflows compared to Bitcoin share of 62%.
As a result, Ethereum only represents 13% of the capital locked in crypto investment products. However, a record-setting $160 million of last week’s capital flows was invested in funds offering exposure to Ethereum.
This weekly inflow far surpasses the amount seen during the last prices rally in late 2017 where only a maximum of $57 million was achieved over a week. Additionally, the figure is nearly double the previous inflow of $87 million set in the week ended December 7.
Coinshares already operates publicly traded crypto exchange-traded-notes (ETNs), which are regulated by the Swedish FSA. The company says they offer retail investors more ‘familiar channels’ to invest in the growing digital asset economy.
The firm states it plans to expand in other jurisdictions. However, it still has a lot of work to do regarding dealing with regulators investigating digital assets.
