Crypto-asset manager CoinShares reported that investment inflows into institutional cryptocurrency funds rose last week, the majority of which was Ethereum.
According to the report, of the $ 245 million crypto inflow last week, 80% or $ 195 million was invested in Ether products ahead of the February 8 launch of the Chicago Mercantile Exchange Ethereum futures.
In comparison, Bitcoin had $ 41.9 million of weekly flow, with an annual total of $ 2.02 billion. The report suggests that diversification of investors is beginning to take place, and it has been added that there is little evidence that profit with investors is preferred to buy and hold.
“We believe that investors want to diversify and become increasingly comfortable with Ethereum principles. Bitcoin has had its lowest inflow (US $ 42 million) since the all-time highs ended in the week ending January 8, 2021. ”
The total inflow of digital asset investment products for 2021 so far now stands at $ 2.6 billion, equivalent to 39% of the $ 6.7 billion of institutional capital invested in crypto funds in just six weeks.
The report says that trading volumes of investment products remain high, averaging $ 670 million a day last week – representing 5.4% of total Bitcoin trading volumes.
Grayscale remains the largest institutional crypto-asset fund with a record $ 33.4 billion in assets under management (AUM) as of February 8th.
02/08/21 UPDATE: Net assets under management, equity per share and market price per share for our investment products.
Total AUM: $ 33.4 billion$ BTC $ BCH $ ETH $ ETC $ ZEN $ LTC $ XLM $ ZEC pic.twitter.com/OOjv6jHsUK
– Grayscale (@Grayscale) 8 February 2021
Grayscale’s Ethereum Trust has grown in terms of total share in the AUM figure and now reaches more than $ 5 billion, which equates to more than 15%. However, the Bitcoin Trust still contains the largest share of all investments, with 82% of the total.
CoinShares reports that 21Shares is the second largest institutional fund with weekly inflows of almost $ 21 million, followed by WisdomTree with $ 11.5 million.
Many experts expected that the launch of CME’s Ether futures contracts would be followed by a sharp collapse to repeat the collapse of prices that followed the launch of Bitcoin futures contracts in December 2017.
However, Ethereum collapsed after contracts were launched and posted a new high of $ 1,780 on February 9th. ETH has changed for the last time for $ 1,750.