The Largest Flow of Investment Funds Entered Bitcoin in the First Quarter of 2021

The flow of investment funds into digital currencies such as Bitcoin was among the largest during the first quarter of 2021. The flow of funds into Bitcoin reached USD 3.5 billion in the first quarter of 2021. This was followed by Ethereum which recorded an investment of USD 765 million.

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In the first quarter of 2021, inflows reached USD 4.5 billion into cryptocurrency funds and products. That number is up 11 percent from the same period last year which reached USD 3.9 billion. According to data from digital currency manager Coinshares on Tuesday, April 6, 2021.

However, based on data, investment into crypto slowed down in the first quarter of 2021 compared to the fourth quarter of 2021. The growth reached 240 percent.

Coinshares said in the report that this was not "indicative of a broader trend of a slowdown, as quarterly growth rates are likely to vary widely."

Increased institutional participation in cryptocurrency products is also supporting investment inflows into cryptocurrency funds and products.

On Monday, April 5, 2021, the market capitalization of the cryptocurrency sector reached an all-time peak of USD two trillion. Bitcoin's market cap is over one trillion US dollars, holding that level of attainment for an entire week.

"There is so much momentum being built and people are scrambling to see where other coins, apart from Bitcoin, are going," said Edward Moya, Senior Market Analyst at the online forex trading platform OANDA. / 2021).

Bitcoin, the largest cryptocurrency in terms of market capitalization, hit a record high of USD 61,781.83 in mid-March, but has since been trading in a narrow range as investors consolidate gains.