NEW YORK (Reuters) – Bitcoin and Ethereum, the two largest cryptocurrencies in terms of market capitalization, saw strong inflows last week, bringing investments in the sector to $ 489 million, the largest since February, according to weekly data from CoinShares Tuesday.
Bitcoin received the lion’s share of $ 441.7 million in investor inflows last week and $ 4.2 billion this year. The world’s largest digital currency saw record weekly churns last week.
Ethereum posted an inflow of $ 30.2 million last week and a record peak of $ 13.9 billion in 2021, according to the data.
The total investment inflow this year was $ 5.45 billion.
Ethereum hit another record of $ 3,530 on Tuesday, bringing its market cap to $ 393 billion. But last time it fell 2.4% to $ 3,353.
“The biggest reason for the surge (in Ethereum) appears to be the growing number of developers building DeFi applications on the platform, as well as the growing institutional interest,” said Petr Kozyakov, co-founder and CEO of global payments network Mercuryo. …
DeFi are crypto platforms that facilitate lending outside of traditional banking institutions.
Other cryptocurrencies such as Polkadot, Binance, and Cardano have experienced modest inflows.
Grayscale remains the largest digital currency manager with $ 49.3 billion as of April 30, up from $ 41 billion in the previous week. CoinShares, the second largest and largest European digital asset manager, controls about $ 5.8 billion last week, up from $ 5.2 billion on April 23.
Total assets under management this year amounted to $ 64.7 billion. In 2020, AUM was $ 19 billion and in 2019 it was $ 2.57 billion.
(Reporting by Gertrude Chavez-Dreyfus; editing by Cynthia Osterman)