According to CoinShares, an investment manager for digital assets, the first quarter of 2021. Set a new record for inflows into institutional crypto products.
As reported in the April 6 CoinShares Fund Flows Weekly newsletter , the first quarter of this year reached a new record with $4.5 billion in inflows compared to $3.9 billion in the last quarter of 2020.
It added that inflows for the latest recorded week, ending April 2, totaled $106 million, making the three-month total 11% higher than the previous quarter. Inflows, however, were lower than in previous weeks, as the week ending March 12 recorded inflows of $242 million.
While institutional inflows have slowed, CoinShares believes that this is not indicative of a broader slowdown trend as quarterly growth rates are mixed.
Inflows over the past week were dominated by $83 million in Bitcoin products, or 78% of the total, and $20 million in Ethereum. Total Bitcoin investment product volumes represent a relatively small share of the 6.7% total trading volume of regulated or "trusted" cryptocurrency exchanges.
Assets under management for both active and passive investment cryptocurrencies reach a record $59 billion. Grey Scale accounts for the lion's share of this AUM with $46 billion, or 78% of the total. The second largest cryptocurrency asset fund is CoinShares itself, with $5 billion in assets under management.
The European digital asset investment firm expanded its institutional products this week with the introduction of a physically-backed Litecoin exchange-traded product . CoinShares' new investment product will initially be listed on the regulated Swiss crypto exchange SIX Swiss Exchange.
Litecoin ETP is the third institutional grade product the company has launched in 2021. It follows the physically backed Bitcoin ETP in January and a similar one for Ethereum in February.