Institutional investors invested $4.5 billion in crypto assets in the first quarter

Institutional investors invested $4.5 billion in crypto assets in the first quarter

Investments in cryptocurrency funds and products reached $4.5 billion in the first quarter, indicating a continued increase in investment in the sector by institutional investors.

According to a report by Coinshares, investments in cryptocurrency funds and products increased by 11% from $3.9 billion last quarter to $4.5 billion in the first three months of this year. However, the growth of investment in cryptocurrencies in the first quarter of 2021 slowed down compared to the pace of the second half of last year.

According to Coinshares, in the fourth quarter of 2020, investments in the cryptocurrency sector increased by 240% compared to the third quarter. Analysts note that this does not ” indicate a broader trend of slowing, as quarterly growth rates tend to vary widely.”

At the beginning of this week, the capitalization of the cryptocurrency market broke the
$2 trillion mark, and the market capitalization of bitcoin is more than $1 trillion. According to Coinshares, the largest inflow of investments in the first quarter was in BTC – $3.5 billion, followed by ETH with $765 million.

The volume of crypto assets under management also rose to a new high of $59 billion. Last year, this figure was $37.6 billion. Grayscale is still the largest crypto asset manager with $46.1 billion under management. CoinShares, Europe’s second-largest and largest digital asset manager, controls about $5.1 billion worth of crypto assets.

At the end of March, CoinShares introduced
The weekly report on investments of financial institutions in cryptocurrency products, noting that new investments of institutional investors in bitcoin decreased to the level of October 2020.The volatility of cryptocurrencies is often cited as one of the reasons why Wall Street investors shy away from investing in bitcoin. However, JPMorgan analysts believe that the indicator will normalize and attract more institutional investors.