Institutions were aggressively accumulating ETH, with Ethereum products representing 80% of last week’s institutional crypto inflows
According to CoinShares, the inflow of capital invested in institutional cryptocurrency funds increased sharply last week and the majority of them were Ethereum. Will the next name be called ETH after Bitcoin price growth?
Ethereum represented 80% of last week’s institutional crypto inflows
At the moment, there are about $ 245 million in crypto in traffic recorded last week. Of which, about 80% of which, equivalent to $ 195 million were invested in Ether products ahead of the launch of the Chicago Mercantile Exchange Ethereum futures contracts on Feb. 8
Similarly, Bitcoin has $ 41.9 million in weekly flow, with so far total of $ 2.02 billion. The report shows investor diversification is beginning to happen, adding that there is little evidence of profit-taking with investors interested in buying and holding.
The report stated:
“We believe investors are looking to diversify and are growing increasingly comfortable with Ethereum fundamentals. Bitcoin had its lowest inflows (US$42m) since the all-time highs were achieved in the week ending 8th January 2021.”
Total investment in digital asset investment products for 2021 to date is $ 2.6 billion – equivalent to 39% of the $ 6.7 billion in institutional capital invested in Crypto funds in 2020 in just six weeks. Investment product transaction volumes remain high, averaging $ 670 million per day last week – 5.4% of all Bitcoin transaction volume.
02/08/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) February 8, 2021
Grayscale remains the largest institutional crypto asset fund with a record $ 33.4 billion under management (AUM) assets as of Feb. 8. AUM figure and has now reached more than 5 billion dollars, equivalent to more than 15%. However, Bitcoin Trust still accounts for a large proportion of all investments, with 82% of the total.
21Shares is the second-largest institutional fund by weekly capital inflows with close to $ 21 million, followed by WisdomTree with $ 11.5 million.
Many experts expected the launch of CME Ether futures to be followed by a sharp crash to repeat the price crash following the launch of Bitcoin futures in December 2017.
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