Following the rise of Bitcoin past $37,000, CoinShares Head of Research James Butterfill revealed that over $1.07 billion in digital asset investment products has been invested this year. This is a significant increase from the $847 million in annual inflows reported just a few days earlier. It also marks a noticeable shift in sentiment among investors, particularly those from institutions that are increasingly showing interest in crypto assets.
The surge in demand and interest in digital assets in 2021 is the third-largest year on record, according to CoinShares’ data that goes back to 2015. This level of investment and interest has not been experienced since 2021. The industry’s resilience amid a steep drop in digital asset prices last year is further evidence of the changing sentiment among investors, especially as large asset managers like Franklin Templeton and BlackRock deepen their involvement in the crypto market.
One of the main factors driving Bitcoin’s recent rally is the anticipation for a spot Bitcoin ETF on Wall Street, with 96% of inflows in 2021 being from products associated with Bitcoin. Amidst this, BlackRock has laid the groundwork for an Ethereum-based ETF, signaling increasing interest in digital assets beyond just Bitcoin. Ethereum has also turned deflationary again, with CoinShares reporting a decrease in annual outflows by $30 million. Overall, the changing attitudes and growing interest in crypto assets represent a significant shift in the investment landscape.
