Flows into cryptocurrency exchange traded fund (ETFs) hit new highs in 2021 as countries around the world, led by Canada, formally adopted the investment vehicles.
The number of crypto-tracking ETFs worldwide more than doubled to 80 this past year from just 35 at the end of 2020, according to data compiled by Bloomberg News.
Assets held in cryptocurrency ETFs soared to $63 billion U.S. in 2021, compared to $24 billion U.S. at the start of the year.
Canada was among the first countries to approve and regulate cryptocurrency ETFs this year. However, the U.S. approved ProShares Bitcoin Strategy ETF (BITO) has proven to be among the most popular crypto ETFs, attracting $1.26 billion in its first month of operation during October.
Analysts predict that investor dollars will continue flowing into cryptocurrency funds throughout 2022 as digital coins and tokens continue to be popular, particularly among younger retail investors.
