By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – Total investor inflows into cryptocurrency funds and products hit $5.6 billion so far this year, up more than 600% from 2019, according to the latest data from asset manager CoinShares.
The inflows plus the latest price moves lifted assets under management for the sector to nearly $19 billion in 2020. Assets under management ended 2019 at just $2.57 billion.
Interest in cryptocurrencies skyrocketed this year as investors saw bitcoin as a hedge against inflation and as an alternative to the depreciating dollar.
hit yet another all-time peak of $24,298.04 on Sunday, but was last down nearly 3% at $22,832.78, hit by a wave of risk-off moves in financial markets on worries about the new coronavirus strain.
On Monday ethereum, the second largest cryptocurrency, fell 4.4% to $610.14.
Inflows into investment crypto investment products totaled $335 million as of Friday, with bitcoin flows accounting for $792.1 million, the data showed. had $207.3 million in weekly flows.
So far this year, investors pumped $15.6 billion into bitcoin products and funds, while ethereum inflows reached nearly $2.5 billion.
“It’s no secret that there are a few big players in the bitcoin/crypto space and that it is mostly crowded with retail-related traders and investors,” said Julius de Kempenaer, senior technical analyst at StockCharts, a technical analysis and financial charting platform for online retail investors.
“The current jump will certainly attract new retail money, but we are also already seeing adoption by more institutions. I think the question is whether institutions can afford not to participate, and for how long,” he added.
Grayscale, the world’s largest crypto fund, had $250.8 million inflows in the latest week, raising its assets under management to $15.3 billion. So far this year, Grayscale has amassed inflows of nearly $5 billion, the CoinShares report said.
Trading volume for bitcoin hit a record $11 billion on trusted exchanges on Dec. 17, but slowed over the weekend. Turnover, however, remained at above the average of $4 billion on Saturday and Sunday.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.