Institutional Investors Invested a Record $9.3 Billion in Cryptocurrency Funds in 2021

The report further stated that the total number of crypto assets or coins as an investment product increased from nine to 15 during the year. In addition, 37 investment products were launched in 2021, making a total of 132 products currently compared to 24 in 2020, indicating the demand and popularity of digital assets.

“While the growth from 2019 to 2020 was significantly higher at 806%, we believe it represents a mature industry, with total assets under management (AUM) ending at $62.5 billion in 2021 , which is just $2.8 billion at the end of 2019.” CoinShares said.

The total AUM of global crypto funds reached above $70 billion during November 2021, when the price of bitcoin was hovering around the $69,000 level. Since then the price of the world’s largest crypto asset has dropped below $50,000 and is trading around the $46,500 area.

The report further noted that bitcoin saw a net inflow of $6.3 billion in 2021, up from $5.4 billion last year, showing a growth of only 16%. On the other hand, the world’s second largest crypto asset, Ethereum, saw an influx from $920 million in 2020 to $1.3 billion in 2021.

The multi-asset fund, which offers multiple crypto assets, saw a net inflow of $775 million during the year against $352 million in the previous year.

However, for the week ended December 31, crypto funds saw a total outflow of $32 million for the third straight week, with the trend suggesting a decreasing outflow following the record weekly outflow in mid-December ($142 million).

In terms of crypto fund providers, the world’s largest digital asset manager, Grayscale, held steady with total assets under management (AUM) of $43.23 billion, followed by CoinShares with an AUM of $4.75 billion and 3iQ with an AUM of $2.52 billion. .