2020 has been a record-breaking year for crypto inflows, according to a recent report from CoinShares. The report, which covers the first half of 2020, reveals that crypto inflows have reached unprecedented levels, with a total of $5.9 billion entering the market. This is a significant increase from the previous year, when inflows totaled $3.2 billion.
The report also reveals that institutional investors have been the driving force behind the surge in crypto inflows. Institutional investors accounted for $4.2 billion of the total inflows, while retail investors accounted for the remaining $1.7 billion. This is a major shift from 2019, when retail investors accounted for the majority of inflows.
The report also highlights the increasing popularity of Bitcoin and Ethereum as investment vehicles. Bitcoin accounted for $3.5 billion of the total inflows, while Ethereum accounted for $1.7 billion. This is a significant increase from 2019, when Bitcoin accounted for only $1.2 billion of total inflows.
In addition, the report reveals that the majority of inflows have been directed towards products that offer exposure to multiple cryptocurrencies. These products, which include exchange-traded funds (ETFs) and index funds, accounted for $3.5 billion of total inflows. This is a significant increase from 2019, when these products accounted for only $1.5 billion of total inflows.
The report also highlights the increasing popularity of decentralized finance (DeFi) products. DeFi products, which include decentralized exchanges (DEXs) and lending protocols, accounted for $1.2 billion of total inflows. This is a significant increase from 2019, when these products accounted for only $400 million of total inflows.
Overall, the CoinShares report reveals that 2020 has been a record-breaking year for crypto inflows. Institutional investors have been the driving force behind this surge, with Bitcoin and Ethereum emerging as the most popular investment vehicles. In addition, products that offer exposure to multiple cryptocurrencies and DeFi products have seen significant growth in popularity over the past year.
