5 bn Total Crypto Fund Inflows in 2020
The overall picture was also very bright; the sum of assets under management for the cryptocurrency sector rose to $19 Billion, up from $2.57 billion in 2019. Koinal offers a safe and convenient process for buying Bitcoin and other currencies. You can begin or extend your crypto investment strategy with Koinal.
Inflows into cryptocurrency funds and record prices for Bitcoin have focused attention on cryptocurrency’s benefits in the pandemic era. Experts predict that new investors will enter the crypto space and that many institutions will also move towards digital assets.
Grayscale is the world’s largest crypto fund. It had more than $250 million inflows in a recent week. Its total assets under management grew to $15.3 billion. For the year, Grayscale achieved inflows of about $5 billion.
Adoption Drives Growth
Institutional investor inflows into cryptocurrency demonstrate a critical phase of mainstream adoption. Many corporations seek remedies for depreciation in the dollar due to the economic impact of the Pandemic. Governments may use quantitative easing to rescue their economies. Currencies may weaken or lose value, and companies see the prospect of Bitcoin holding or increasing in value.
Trading volume for Bitcoin scored a record high on December 17, 2020, at $1 Billion measured on a set of trusted exchanges. Bitcoin reached a record $24,298 then dropped to $22,800. Bitcoin market reacted to news events about COVID-19. Investors and institutional investors demonstrated a rational reaction to news and events. Markets have traditionally shown this type of volatility.