Crypto Currency News

First quarter of 2021: Bitcoin investments are up, but at a slower pace

A study by Coin shares shows an 11% growth in the inflow of capital to the crypto market.

A new report from the crypto fund manager Coin shares showed that the first quarter of 2021 reached a historical record in the entry of capital and crypto products into the market: 4.5 billion dollars. The milestone also represented an increase of 11% compared to the previous quarter (3.9 billion), which in turn represented the current record.

Despite the new record, the analysis warns of a sharp slowdown in investment income compared to the past period. The last quarter of 2020, which coincided with the massive influx of institutional investments and new crypto services of massive reach (such as the new PayPal platform), showed an extraordinary increase of 240% compared to the previous quarter.

See also  Why crypto currencies are more attractive than Central Bank Digital Currencies

However, from the firm they indicated that a reduction in growth was expected; what is encouraging is the growth itself. “Quarterly growth rates tend to be very varied, “they noted from Coin shares.

Likewise, other specialists in the ecosystem have highlighted the growth of the althorn market, in addition to Bitcoin (BTC). While the leading crypto currency dominates the market by almost 60%, the rest of the crypto currencies show constant growth that has led the market to exceed 2 trillion dollars in capitalization after a brief rally. It is currently just barely below it, but it is highly likely that by the end of the month it will have far exceeded it.

See also  Dogecoin and Ethereum Classic dominate weekly top with rises of more than 100%

The dominance of Bitcoin (BTC) is evident in the first quarter entries. Approximately $ 3.5 billion corresponded to the reference crypto currency, while Ethereum (ETH) came in second, with almost $ 765 million.

The increase in investments in the market is also translated into the greater volume of the coffers of crypto fund managers. Grayscale dominates the ecosystem with more than $ 46 billion under management, followed by Coin shares itself with $ 5.1 billion. Added to the smaller administrators, the total funds under administration rises to 59 billion.

Back to top button