Crypto asset manager CoinShares has reported that the inflows of investments in institutional cryptocurrency funds have risen sharply over the past week, the majority of which has been Ethereum.
According to the report, of the $ 245 million crypto inflow last week, 80%, or $ 195 million, was invested in ether products before the Chicago Mercantile Exchange launched Ethereum futures contracts on Feb. 8.
By comparison, Bitcoin had $ 41.9 million of weekly flows, for a total of $ 2.02 billion since the start of the year. The report suggested that investor diversification was beginning, adding that there was little evidence that profits were being made with investors who preferred to buy and hold.
“We believe investors will seek diversification and become increasingly familiar with Ethereum fundamentals. Bitcoin saw its lowest inflows ($ 42 million) since hitting all-time highs in the week of January 8, 2021. “
The total inflows into digital asset investment products for 2021 is $ 2.6 billion so far. This equates to 39% of the $ 6.7 billion institutional capital invested in crypto funds in just six weeks in 2020.
According to the report, trading volume in investment products remains high, averaging $ 670 million per day last week. This corresponds to 5.4% of the total Bitcoin trading volume.
Grayscale remains the largest institutional crypto wealth fund, with record assets of $ 33.4 billion (AUM) as of Feb.8.
02/08/21 UPDATE: Net assets under management, stocks per share and market price per share for our investment products.
Total AUM: USD 33.4 billion BTC $ BCH $ ETH $ ETC $ ZEN $ LTC $ XLM $ ZEC pic.twitter.com/OOjv6jHsUK
– Grayscale (@Grayscale) February 8, 2021
Grayscale’s Ethereum Trust has grown in terms of the total share of the AUM number and is now over $ 5 billion, which is over 15%. However, the Bitcoin Trust still holds the lion’s share of all investments with 82% of the total.
CoinShares reports that 21Shares is the second largest institutional fund based on weekly inflows with nearly $ 21 million, followed by WisdomTree with $ 11.5 million.
Many experts expected that the launch of CME’s Ether futures would be followed by a sharp crash, to replicate the drop in prices following the launch of Bitcoin futures in December 2017.
However, after signing the deal, Ethereum rebounded, hitting a new all-time high of $ 1,780 on February 9. ETH last changed hands for $ 1,750 at the time of writing.
