CoinShares data reaffirms the narrative that institutional investors continue to allocate considerable amounts into cryptocurrency assets. Last week was the second-highest seven-day period with nearly $430 million inserted in the crypto market, driving the assets under management to an all-time high of $15 billion.<\/p>\n
Record-Breaking Weeks For Institutional Money In Crypto<\/h2>\n
By citing data from the digital asset manager CoinShares, Reuters\u00a0reported\u00a0the significant growth of institutional money entering the cryptocurrency space in the past few months.<\/p>\n
On a more micro-scale, the week that ended on December 7th saw a fresh wave of $429 million. Thus, it became the second-best week after the all-time high record marked less than a month ago with $468 million.<\/p>\n
The world\u2019s largest cryptocurrency manager Grayscale has taken the largest pie of the share with 78% (or $336 million). With the latest injection, Grayscale\u2019s total assets under management have grown to north of $12 billion. In 2020 alone, the company has seen inflows of $4.3 billion.<\/p>\n
Somewhat expectedly, bitcoin-focused funds have seen the most substantial share of these funds. On a weekly scale, such funds have attracted nearly $335 million. Thus, the total amount of inflows has jumped to $4 billion since the start of 2020.<\/p>\n
Only The Cusp Of Institutional Adoption<\/h2>\n
The cryptocurrency community has contemplated for years on the idea of if or when institutional investors will start recognizing and investing in bitcoin. Although this remained speculation at best in the past, 2020 has turned out to be the first significant sign of institutional adoption.<\/p>\n
Prominent names as\u00a0Paul Tudor Jones III\u00a0and Stan Druckenmiller praised BTC and publicly admitted that they have allocated funds in it. The Wall Street giant Guggenheim\u00a0filed a document\u00a0with the SEC to purchase up to $500 million worth of bitcoin for one of its funds as well.<\/p>\n
The CoinShares report indicates that the total AUM in the sector has reached an all-time high of $15 billion. Despite these large names entering the space, James Butterfill, investment strategist at the digital asset manager, believes that the industry is only \u201con the cusp of institutional adoption.\u201d<\/p>\n
\n\u201cOn an anecdotal level, based on our client conversations over the course of 2020, we have seen a decisive shift from inquiries of speculative nature to those that begin with comments such as, \u2018bitcoin is here to stay, please help us understand it.\u2019\u201d<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/blockquote>\n
*The HYIP industry can also start functioning a little differently, offering investors new earning schemes, not just accepting cryptocurrency deposits, but also working on other principles…<\/p>\n