Institutional Investors Pump $429 Million Into Crypto as Bitcoin Steals the Show
Brian Njuguna Dec 08, 2020 09:52
In the past one week, institutional investors pumped a whopping $429 million into crypto funds and products, with GrayScale taking the bulk at $336.3 million.
In the past one week, institutional investors have been on an investment frenzy as they pumped a whopping $429 million into crypto funds and products, with GrayScale taking the bulk at $336.3 million. This record-breaking move became the second-highest weekly inflow after $468 million was recorded in mid-November.
Crypto assets under management hit $15 billion
The data by digital asset manager CoinShares noted that the high crypto fund inflows pushed the assets under management to an all-time high (ATH) of $15 billion compared to $2.57 billion recorded at the end of 2019.
James Butterfill, an investment strategist at CoinShares, acknowledged the crypto milestone and said:
“On an anecdotal level, based on our client conversations over the course of 2020, we have seen a decisive shift from enquiries of a speculative nature to those that begin with comments such as, bitcoin is here to stay, please help us understand it.”
He added that institutional investors’ interest was hitting the roof, which could trigger a widespread adoption rather than a cool down of crypto.
This observation correlates with a study conducted by Fidelity Digital Assets, which surveyed 774 institutional investors across the United States and Europe, and 80 percent of them found something appealing about digital assets. Furthermore, 60 percent of these institutional investors believed that digital assets had a place in their investment portfolio.
Bitcoin steals the show as gold takes a beating
Bitcoin was the largest beneficiary of the weekly crypto fund inflows as $334.7 million was invested, pushing total investments to almost $4 billion so far this year. Nasdaq-listed MicroStrategy Inc. took a share of the cake as it purchased an additional 2574 Bitcoins worth $50 million.
Ethereum was second with $87.1 million inflows over this period. Compared to Bitcoin that has seen inflows of $1.4 billion in the last four weeks, gold has taken a beating as its outflows from investment products have hit a record $9.2 billion.
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