NEW YORK – Inflows into cryptocurrency funds and products hit a record $4.5 billion in the first quarter, suggesting increased institutional participation in the once-maligned sector, data from digital currency manager Coinshares showed on Tuesday.
The first quarter inflows represented an 11% increase from the last three months of 2020, which hit $3.9 billion.
Investments into crypto, however, slowed in the first quarter compared with the fourth, where growth was 240%, data showed. Coinshares said in the report, however, that this was not “indicative of a broader slowing trend, as quarterly growth rates tend to be highly varied.”
On Monday, the cryptocurrency sector hit an all-time peak of $2 trillion in market capitalization. Bitcoin‘s market cap was more than $1 trillion, holding that milestone level for one whole week.