Institutional investors turn to Ethereum, ETH inflows dominate market share

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. Ethereum 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.

Bitcoin, 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.

Subscribe to BTC Peers

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.