Crypto funds attracted $ 9.3 billion in admissions in 2021 as institutional adoption increases

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Institutional cryptocurrency funds attracted record inflows in 2021, as demand for digital assets such as Bitcoin (BTC) and Ether (ETH) continued to grow during a volatile and often unpredictable bull market.

Crypto investment products saw inflows of $ 9.3 billion during the year, up from $ 6.8 billion in 2020, according to the latest data from CoinShares, released on Tuesday. Bitcoin funds attracted $ 6.3 billion in capital last year, while Ether products saw inflows totaling nearly $ 1.4 billion. Multi-asset funds were also popular, attracting $ 775 million in investor capital.

A total of 37 investment products were launched in 2021, compared to 24 launched on the market the previous year. Notably, crypto assets included in investment products fell from nine to 15 in the previous year.

Grayscale remains the largest crypto asset manager with $ 43.5 billion in assets under management on Monday. Other multi-billion dollar asset managers included 3iQ, 21Shares, ETC Group, Purpose and ProShares.

03/01/22 UPDATE: Net assets under management, holdings per share and market price per share for our investment products.

Total AUM: $ 43.5 billion BTC $ BAT $ BCH $ LINK $ MANA $ ETH $ ETC $ FIL $ ZEN $ LTC $ LPT $ XLM $ ZEC $ UNI $ AAVE $ COMP $ CRV $ MKR $ SUSHI $ SNX $ YFI $ ADA $ SOL $ AMP pic.twitter.com/67Pb7xneoQ

– Grayscale (@Gray levels) January 4, 2022

Despite massive volatility, cryptocurrencies have enjoyed wider recognition in 2021, with retail and institutional investors participating in the market. 2021 was the year crypto evolved into a multi-trillion dollar asset class, putting it on the radar of fund managers and family offices. Along the way, a host of BTC exchange traded products entered the market, including the Purpose Bitcoin ETF in Canada, which provided North American investors with one-time exposure to the main digital asset.

Related: Bitcoin Open Interest Hits All-Time High Amid BTC Price ‘Fireworks’ Forecast This Month

U.S. regulators are also reportedly approving several Bitcoin ETFs linked to futures in 2021, opening the door to wider institutional adoption. The Securities and Exchange Commission is expected to deliver its verdict on a pair of Bitcoin funds physically backed by NYSE Arca and Grayscale in early February.

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