Investment in financial products backed by bitcoin (BTC) and other cryptocurrencies totaled $ 174 million last week. It was the 12th consecutive week of positive capital flows, according to a report from the investment company CoinShares. With this flow of investment towards cryptocurrencies in the first week of November, the total invested so far this year reaches USD 8,898 million, according to the study.
Less than two months before the end of 2021, investment flows towards cryptocurrency-related products so far this year exceed 39% what was invested in 2020, agree to the report. If the same rhythm of capital flows is maintained, the total for 2021 would be approximately USD 10.6 billion, which would exceed the previous year by 66%.
The following table details the investment flows in financial products backed by bitcoin and other cryptocurrencies, broken down by company, which include the main operating companies of bitcoin funds and other cryptocurrencies, as well as those that have launched bitcoin ETFs this year in Canada, the United States and Europe.
As seen in the table, Grayscale broadly dominates the cryptocurrency mutual fund segment followed by CoinShares funds and ETFs launched in Canada between February and April of this year. The latter are Purpose Investments, 3iQ and ETC Group. ProShares is the investment company that launched the first bitcoin futures ETF in the United States, on October 19, as reported by CriptoNoticias.
Major capital flows to bitcoin
Capital inflows to bitcoin instruments were $ 95 million last week. In the last 8 weeks of this bull cycle, USD 2,800 million flowed, while the total capital that the first cryptocurrency attracted so far this year totals USD 6,400 million. That represents 72% of everything invested in cryptocurrency funds and ETFs so far in 2021..
Bitcoin and ether, the cryptocurrency of Ethereum, attract 85% of the capital flows that go to digital assets. Regarding managed assets, these two cryptocurrencies constitute 92% of the total.
Regarding Ethereum, the investments attracted so far in 2021 reach USD 1,088 million and the total assets managed accumulated in different funds is USD 19,918.
Below Ethereum, the altcoins with the highest investment flows last week were Tron (TRX), Solana (SOL), Polkadot (DOT) and Cardano (ADA), while in managed assets they dominate Binance (BNB), Solana, and Polkadot.
The following graph shows the weekly investment flows by provider for 2020 and 2021. The amounts for 2020 are represented from the horizontal axis downwards and it can be seen that they are generally lower than what was invested in 2021.
The bar that stands out on the right side of the chart corresponds to the week of October 19, when the ProShares bitcoin ETF was launched, the magnitude of which is represented in blue.
As CriptoNoticias reported to you on Tuesday, the recent bitcoin rally led the market capitalization of cryptocurrencies to surpass the historical milestone of 3 trillion. Capital flows to cryptocurrencies are expected to increase, given the increased interest of investors in these digital assets.