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.
Bitcoin hit yet another all-time peak of $24,298.04 on
Sunday, but was last down nearly 3 percent 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 percent 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. Ethereum 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 December 17, but slowed over the weekend. Turnover,
however, remained at above the average of $4 billion on Saturday and Sunday.
© Reuters