The inflows plus the latest price moves lifted assets under management for the sector to nearly $19 billion (roughly Rs. 1,40,300 crores) in 2020. Assets under management ended 2019 at just $2.57 billion (roughly Rs. 19,000 crores).
Interest in cryptocurrencies skyrocketed this year as investors saw bitcoin as a hedge against inflation and as an alternative to the depreciating dollar.
Bitcoin hit yet another all-time peak of $24,298.04 (roughly Rs. 17.9 lakhs) on Sunday, but was last down nearly 3 percent at $22,832.78 (roughly Rs. 16.8 lakhs), hit by a wave of risk-off moves in financial markets on worries about the new coronavirus strain.
On Monday ethereum, the second largest cryptocurrency, fell 4.4 percent to $610.14 (roughly Rs. 45,000).
Inflows into investment crypto investment products totaled $335 million (roughly Rs. 2,500 crores) as of Friday, with bitcoin flows accounting for $792.1 million (roughly Rs. 5,900 crores), the data showed. Ethereum had $207.3 million (roughly Rs. 1,500 crores) in weekly flows.
So far this year, investors pumped $15.6 billion (roughly Rs. 1,15,200 crores) into bitcoin products and funds, while ethereum inflows reached nearly $2.5 billion (roughly Rs. 18,500 crores).
“It’s no secret that there are a few big players in the bitcoin/crypto space and that it is mostly crowded with retail-related traders and investors,” said Julius de Kempenaer, senior technical analyst at StockCharts, a technical analysis and financial charting platform for online retail investors.
“The current jump will certainly attract new retail money, but we are also already seeing adoption by more institutions. I think the question is whether institutions can afford not to participate, and for how long,” he added.
Grayscale, the world’s largest crypto fund, had $250.8 million (roughly Rs. 1,850 crores) inflows in the latest week, raising its assets under management to $15.3 billion (roughly Rs. 1,13,000 crores). So far this year, Grayscale has amassed inflows of nearly $5 billion (roughly Rs. 36,900 crores), the CoinShares report said.
Trading volume for bitcoin hit a record $11 billion (roughly Rs. 81,200 crores) on trusted exchanges on December 17, but slowed over the weekend. Turnover, however, remained at above the average of $4 billion (roughly Rs. 29,500 crores) on Saturday and Sunday.
© Thomson Reuters 2020
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