Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Cryptocurrency inflows hit all-time high of $4.5 billion in first-quarter - Coinshares

04/06/2021 | 06:39pm EDT
FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph

NEW YORK (Reuters) - Inflows into cryptocurrency funds and products hit a record $4.5 billion in the first quarter, suggesting increased institutional participation in the once-maligned sector, data from digital currency manager Coinshares showed on Tuesday.

The first quarter inflows represented an 11% increase from the last three months of 2020, which hit $3.9 billion.

Investments into crypto, however, slowed in the first quarter compared with the fourth, where growth was 240%, data showed. Coinshares said in the report, however, that this was not "indicative of a broader slowing trend, as quarterly growth rates tend to be highly varied."

On Monday, the cryptocurrency sector hit an all-time peak of $2 trillion in market capitalization. Bitcoin's market cap was more than $1 trillion, holding that milestone level for one whole week.

"There's so much momentum that's building and people are scrambling to see where the other coins, aside from bitcoin, are going," said Edward Moya, senior market analyst at online FX trading platform OANDA.

Bitcoin had the most inflows in the first quarter with $3.5 billion, according to the Coinshares data, followed by ethereum, which posted $765 million in investments.

The largest cryptocurrency in terms of market cap hit a record high of $61,781.83 in mid-March, but has since traded in a narrow range as investors consolidated gains.

Crypto assets under management have also surged to a peak of $59 billion, CoinShares data showed. Last year, assets under management for the sector hit $37.6 billion.

Grayscale is still the largest digital currency manager, with $46.1 billion in assets, while CoinShares, the second biggest and the largest European digital asset manager, oversees about $5.1 billion in assets.

Of the $59 billion in assets under management, active investment managers represented just 1.5% of total assets under management, down from 3.6% at the start of the fourth quarter last year.

Total market volumes remained high during the quarter, averaging $11.6 billion per day, compared with $3.5 billion in the last three months of 2020.

(Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)

By Gertrude Chavez-Dreyfuss


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BITCOIN - EURO 0.03% 46379.08 Real-time Quote.96.50%
BITCOIN - UNITED STATES DOLLAR -0.18% 55733.35 Real-time Quote.93.28%
Latest news "Economy & Forex"
01:20pCANADIAN NATIONAL RAILWAY  : launches battle for Kansas City rail with $30 billion-plus bid
RE
01:18pApple says new apple tv 4k to start at $199 at $64 gb --- apple event
RE
01:15pNetherlands to resume use of j&j covid-19 vaccine -health minister
RE
01:13pSky italia ceo maximo ibarra to leave company after the end of july - internal memo
RE
01:12pRussian ministries agree to reduce fuel tax, raise extraction tax for oil firms
RE
01:10pApple says apple airtags to start at $29
RE
01:05pNetherlands scraps coronavirus curfew as of April 28
RE
01:05pDUTCH PM RUTTE : Outdoor bar and restaurant service allowed from april 28
RE
01:05pAir pollution costs Indian businesses $95 billion a year - study
RE
01:05pGucci joins luxury goods rebound, boosting Kering sales
RE
Latest news "Economy & Forex"