Cryptocurrencies Achieve Record Investment Inflows and Market Cap

Cryptocurrencies continue to see growing interest and demand from both retail and institutional investors.

Recent data by Coinshares indicated that investment inflows into cryptocurrency funds hit a new record high of $4.5 billion during the first quarter (Q1) of 2021, Reuters reported.

Q1 inflows registered an 11% quarterly increase compared with Q4 of 2020, which saw $3.9 billion of investment inflows.

On the other hand, the pace of growth in inflows relatively slowed, after recording 240% in the last three months of last year.

However, data suggest that this does not represent a trend, as quarterly rates vary based on many market conditions.

As expected, the largest cryptocurrency in the world, Bitcoin, dominated the biggest share of inflows in the Q1 at $3.5 billion.

Ethereum came in second place with $765 million in investments inflows.

Last month, Bitcoin hit an all-time record high at $61,781.83, while Ether hit a new record high yesterday, exceeding $2,150 for the very first time.

Data further showed that Crypto assets under management (AUM) grew to a new record level of $59 billion.

Yesterday, data by CoinGecko and Blockfolio showed that market capitalization of cryptocurrencies exceeded the $2 trillion milestone for the first time.

It is worth noting that Bitcoin, the biggest digital currency, dominates nearly half of this market cap value, at a little over $1 trillion.