- Cryptocurrency investment products saw a total inflow of $ 9.3 billion in 2021, an increase of 36% over 2020, a record $ 6.8 billion.
- Total assets under management increased to $ 62.5 billion in 2021, while the volume of investment products increased to a total of 132.
2021 was the year that institutional investors began investing in cryptocurrencies, and CoinShares has released new data to support this demand. The report shows that funding for cryptocurrency investment products increased 36% to a total of $ 9.3 billion in 2021, a large cumulative sum of $ 62.5 billion. Investment products also had their best year, with a total of more than 130 such products worldwide.
The cryptocurrency market soared to hit the $ 3 trillion mark. Most of this growth is due to retail investors, as the number of addresses with less than one BTC increased to an all-time high, as did the number of non-zero addresses. However, institutional investors also added their bit.
According to a recent report by London-based company CoinShares, in 2021, the number of entries in cryptocurrency investment products totaled $ 9.3 billion. This was a 36% increase over the $ 6.8 billion recorded in 2020. An increase of 806% over the previous year as professionals first participated in crypto. According to CoinShares, while net growth in 2021 was lower, it was indicative of a maturing industry.
Currently, total managed assets (AUM) in cryptocurrency investment products amount to $ 62.5 billion. Most of this figure is due to grayscale, as the DCG-owned company ended up in 2021 with $ 43.6 billion in AUM. The vast majority of the company is based in BTC, but it also offers investment products in Ethereum, Chainlink, Litecoin, Bitcoin Cash, Cardano, Solana, and SUSHI.
12/31/21 Update: Net Managed Assets, Holdings Per Share, and Market Price by Share of our Investment Products.
Total AUM: $ 43.6 billion$ BTC $ BAT $ BCH $ LINK $ MANA $ ETH $ ETC $ FIL $ ZEN $ LTC $ LPT $ XLM $ ZEC $ UNI AAVE $ COMP $ CRV $ MKR $ SUSHI $ SNX $ YFI $ AON $ BNT $ ADA $ SOL pic.twitter.com/vCkExTIjHh
– Grayscale (@Grayscale) December 31, 2021
The exits greatly increased towards the end of 2021: CoinShares
While newcomers set new records, some of the biggest weekly and monthly events during the year were also busy in 2021. $ 32 million was recorded in the last week of the year. This figure is lower than the first three weeks, which set a record total of $ 228 million in exit.
More information: Postal Records Issues Digital Asset Funds Amid A Downturn In The Crypto Market
Bitcoin may be the king of the pack, but in 2021, it had the least significant performance of any major cryptocurrency, CoinShares reported:
Bitcoin saw total flows in 2021 of $ 6.3 billion compared to $ 5.4 billion, a year-on-year increase of just 16%, where inflow growth was lowest compared to other digital asset investment products.
Ethereum, on the other hand, had a great year. The initial inflows of altcoin saw a skyrocket from $ 920 million in 2020 to $ 1.3 billion in 2021.
There has been more good news since 2021, with CoinShares confirming:
The total number of coins in investment product form increased from 9 to 15. 37 investment products were launched in 2021 compared to 24 in 2020 and now number 132, reflecting the demand and popularity of digital assets.