2021 can be classified as one of the biggest milestones in the industry, as cryptocurrency fans experienced a massive surge and unforeseen decline overnight. Some investors pooled huge returns with limited investments, while others suffered severe losses in their investment portfolios. However, in all this chaos, cryptocurrency continues to dominate the financial industry, setting a new record for the industry.
Having said that, a research report released by CoinShares data shows the super success of cryptocurrency in the past year. According to the report, the inflow of encrypted products in 2021 was as high as 9.3B USD, an increase of 6.8B USD over the figure in 2020.The amazing growth of crypto investment projects can be attributed to the increased demand for top virtual assets, such as Bitcoin (BTC) and Ether (ETH). Despite the general volatility and unpredictable trends in the market space, the ranking of the industry continues to climb.
According to the official data report, the Bitcoin fund collected 6.3B worth of investments throughout the year, while the Ethereum inflowed 1.4B worth of funds during the same time period. The multi-asset fund sector recorded significant growth, with the value of investment capital inflows reaching US$775 million. Compared with the 24 projects launched in 2020, 37 investment solutions were launched this year. In 2021, the number of encrypted assets included in the investment cluster will increase from 9 to 15, which implies an increase in the popularity of the crypto space.
The leading asset management company Grayscale has become the largest single crypto asset management platform, with assets under management of $43.5B. Other well-known asset management service companies include 3iQ, 21Shares, ETC Group, Purpose and ProShares.
Update on January 3, 22: The net assets under management, holdings per share and market price per share of our investment products.
Total assets under management: US$43.5 billionBitcoin $BAT $BCH $ Link $ MANA $ ETH $ETC $ FIL $zen $LTC $LPT $ XLM $ZEC $UNI AAVE $COMP $CRV $ Mark $ Sushi $ SNX $YFI $ADA $SOL $AMP pic.twitter.com/67Pb7xneoQ
-Grayscale (@Grayscale) January 4, 2022
Investors engaged in cryptocurrency trading are well aware of the highly volatile market conditions in the industry. As we all know, the crypto market space experiences sudden changes in trends, and price charts often fluctuate. Nonetheless, as the industry manages to expand its customer base and operational capabilities globally, cryptocurrency has achieved slow and steady growth in 2021. This multi-billion-dollar industry will become a trillion-dollar industry in 2021, making it a popular choice for corporate and retail investors. The launch of BTC ETFs in multiple regions has exposed people to the use of cryptocurrencies. The Canadian purpose BTC ETF may help North American investors try their luck with cryptocurrencies.
Regulators encourage institutions to adopt cryptocurrencies by approving ETF projects linked to futures.The U.S. Securities and Exchange Commission may Grayscale February 2022. With the continued flow of investors in the industry, institutions’ propensity for encryption may increase.