Digital Asset Products Record $103 Million Inflows as Assets Under Management Maintains $52 Billion Position

Cryptocurrency and digital asset products have seen record inflows in 2021, as assets under management increased to $52 billion in April 2021. According to research by the cryptocurrency intelligence firm Unchained Capital, inflows to digital asset products reached $103 million in the first quarter of 2021, surpassing all of 2020.

The total inflows of $103 million were buoyed by $50 million in inflows to ETH-backed Synthetix products, $22 million into decentralized finance (DeFi) products, $17 million to Basis Protocol products, and $14 million to Seigneurial Protocol products.

The data further showed that inflows to bitcoin-backed securities products grew significantly in the first three months of 2021, accounting for $41 million of the total inflows of $103 million. This marked a 300% increase compared to the same period last year, where only $10 million was raised.

Interestingly, the data also showed that DeFi-related inflows grew in Q1 2021 despite the dip in asset prices this year. Inflows to stablecoin-backed securities and synthetic assets accounted for the majority of the inflows to DeFi products, as investors saw value in the diversification those assets offer.

The data shows sustained investor interest in the space. With Ethereum 2.0 and other innovations in the works, investors may be keen to bet on the long-term potential of cryptocurrency and digital asset products.

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