The cryptocurrency industry has seen the largest number of inflows in a single quarter in these first weeks of 2021. Although the first quarter is not yet complete, it has already broken the record for the most significant capital inflows with over 4.2 billion dollars, according to a CoinShares report. It is also interesting that the Ethereum cryptocurrency is attracting a lot of interest from investors as about 50% of the total flows have been invested in it in the last weeks.
Cryptocurrencies are beginning to attract capital, even from institutional investors or large corporations. The entry of names such as MassMutual, MicroStrategy, One Asser River Management and Tesla “legitimised” Bitcoin and the most sceptical.
The data provided by Digital Asset Investment Manager, CoinShares, supports this narrative. In a recent report examining cryptocurrency inflows, the company said investors had invested a total of $3.9 billion in digital assets in the last quarter of 2020.
It is worth noting that in addition to bitcoin, which has been the undisputed leader for most weeks, Ethereum has also seen steady revenue growth. In addition, Ethereum even surpassed Bitcoin in the second week of March, accounting for almost 50% of total flows.
In addition to the great success of exchanges (eg Binance, Coinbase, etc.), the report also highlights the success of various derivatives. Bitcoin has already seen many approvals for such products. The first came in early February in Canada. The Ontario Securities Commission (OSC) has given the green light to the Purpose Bitcoin ETF, which has so far been a huge success. In its first month of existence, the product raised more than $1 billion. The Canadian regulator approved it, although the US continues to reject anything similar. Latin America, on the other hand, will also have a Bitcoin ETF equivalent to be released by a Brazilian encryption asset manager.