Crypto Market Witnessed A Record $9.3 Billion Inflow of Institutional Money in 2021

Published by
Crypto Market Witnessed A Record $9.3 Billion Inflow of Institutional Money in 2021

The cryptocurrency market witnessed a mega bull run during the last year of 2021. On Tuesday, January 4, institutional crypto investing platform CoinShares shared annual stats regarding institutional inflows in the crypto space last year.

As per the report, the institutional yearly inflows in crypto stood at a staggering $9.3 billion marking a near 36% jump against $6.8 billion in 2020. Furthermore, the total number of crypto assets and investment products has also expanded from 9 to 15 in 2021.

Additionally, 37 new investment products were launched last year against 24 products in 2020. Thus, as of now, there are 132 institutional crypto products suggesting strong institutional demand in the crypto space. In its report, CoinShares mentioned:

“While the increase from 2019 to 2020 was significantly higher at 806%, we believe this represents a maturing industry, with total assets under management (AUM) ending the year at $62.5 billion in 2021 versus just $2.8 billion at the end of 2019″.

Bitcoin still continues to dominate net inflows in the market against other altcoins. As per the CoinShares report, Bitcoin registered net inflows of $6.3 billion in 2021 marking a 16% increase over the previous year. On the other hand, Ethereum registered net inflows of $1.3 billion in 2021. Other multiasset funds with a basket of cryptocurrencies witnessed net inflows of $775 million.

The world’s largest digital asset manager – Grayscale – continued to maintain its market dominance with $43.5 billion in AUM. This was followed by CoinShares at $4.75 billion and 3iQ with an AUM of $2.52 billion.

Institutional Crypto Buying to Continue in 2022 Amid Inflation Fears

During his recent interview with Forbes, FTX exchange founder Sam Bankman-Fried said that he expects institutional crypto buying to continue strongly in 2022. This will be predominantly driven by greater regulatory clarity as well as the rising inflation fears, said SBF. In his interview, the FTX founder noted:

The things that make me optimistic basically are more regulatory clarity in the US and globally which I think could help a ton on institutional adoption. A lot of it depends on exactly what happens on the regulatory front as well.

He further added: “Basically every large financial institution I’ve talked to, every large bank, every large investment bank, pension funds, they’re all eyeing this sector.”

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025
  • 24/7 Cryptocurrency News

Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility

Pi Network has now added two new features to its Testnet. These are a decentralized…

October 1, 2025
  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025