The Crypto Asset Manager CoinShares reported this Investment inflows into institutional cryptocurrency funds skyrocketed last week, most of them in Ethereum.
The report shows that 80%, or $ 195 million, of last week’s $ 245 million crypto inflow was invested in Ether products prior to the launch of the Chicago Mercantile Exchange Ethereum futures contracts February 8.
By comparison, Bitcoin received $ 41.9 million from weekly flows for a total of $ 2.02 billion this year.. The report indicated that investor diversification was beginning to begin, and it added this There was little evidence of profit-taking as investors preferred to buy and hold.
“We believe that investors seek diversification and are more familiar with the fundamentals of Ethereum. Bitcoin had its lowest inflows ($ 42 million) since hitting an all-time high in the week ending January 8, 2021. “
The total inflow of digital asset investment products for 2021 so far is $ 2.6 billion, 39% of the institutional capital of $ 6.7 billion invested in cryptocurrency funds in 2020 in just six weeks.
The report states: The trading volume in investment products remains high. The average last week was $ 670 million per day, which is 5.4% of the total Bitcoin trading volume.
Grayscale remains the largest institutional crypto wealth fund, with record assets of $ 33.4 billion (AUM). from February 8th.
08/02/21 UPDATE: Net assets under management, stocks per share and market price per share of our investment products.
Total AUM: $ 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 more than 15%. However, the Bitcoin Trust still holds the lion’s share of all investments at 82% of total investments.
CoinShares reports that 21Shares is the second institutional fund by weekly listings at nearly $ 21 million, followed by WisdomTree at $ 11.5 million.
Many experts expected that the launch of CME’s Ether futures would be followed by a sharp decline. to repeat the drop in prices after the Bitcoin futures launch in December 2017.
Yet, Ethereum rebounded after the contracts started and hit a new all-time high of $ 1,780 on February 9th.. The last time ETH changed hands, it was $ 1,750 at the time of going to press.