Institutional investors turn to Ethereum, ETH inflows dominate market share

According to a report from crypto asset manager CoinShares, a significant percentage of institutional crypto inflows went to Ether products over the last week. dominated the market by receiving $195 million (about 80%) out of the $245 million crypto inflow last week.

This is an indication that institutions were actively accumulating the world’s second-largest cryptocurrency ahead of the launch of the CME Ethereum futures contracts yesterday.

, on the other hand, recorded a $41.9 million weekly inflow, with a year-to-date value of $2.03 billion. The report further suggested that investors were buying digital assets to hold for the long-term. Whilst investor diversification is beginning to occur, there is little evidence of profit-taking. CoinShares wrote:

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.

$2.6 billion has moved from institutional players into crypto investment products in 2021. When compared with the $6.7 billion institutional inflow for 2020, about 39% of the entire institutional capital for last year has moved into cryptocurrencies in just six weeks.

Meanwhile, Grayscale has continued to dominate the market. The crypto asset fund holds a whopping $33.4 billion in crypto assets under management as of February 8.

Continue reading on BTC Peers

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link