Investor flows into cryptocurrency investment funds is on track for a record quarter, according to CoinShares.

1. Cryptocurrency Fund Flows On Track for Record Quarter

Cryptocurrency Fund Flows On Track for Record Quarter Cryptocurrency Fund Flows On Track for Record Quarter

Q1 inflows to cryptocurrency investment products (ETPs) total $4.2 billion already, breaking the quarterly record of $3.9 billion in Q4 2020, according to a report by CoinShares, a digital asset investment firm.

  • Digital asset investment products closed on Friday with a record $55.8 billion assets under management (AUM) following net inflows and positive price action last week of $242 million, according to the CoinShares report.
  • Ethereum funds took in a net $113 million last week.
  • Passive investment products with $54.1 billion AUM continue to outperform their active peers with a smaller $786 million in AUM, according to CoinShares. Passive funds simply track the price of digital assets, while active strategies adjust the weightings of their underlying holdings based on market conditions.
  • “The price action as bitcoin (BTC, -9.98%) drew closer to $60,000 led to minor outflows of $39 million last week, which we believe is due to profit taking,” according to CoinShares.