Crypto asset manager CoinShares reported that investment flows in institutional cryptocurrency funds increased last week, and most were Ethereum.
The report states that of the $ 245 million crypto inflow last week, 80% or $ 195 million was invested in Ether products before the launch of the Chicago Mercantile Exchange Ethereum futures contracts on February 8.
By comparison, Bitcoin had $ 41.9 million in weekly flows, with a year-to-date total of $ 2.02 billion. The report suggested that investor diversification was beginning to occur, adding that there was little evidence of profit taking with investors preferring to buy and hold.
“We believe that investors are looking to diversify and are increasingly comfortable with Ethereum’s fundamentals. Bitcoin had its lowest income ($ 42 million) since historic highs were reached in the week ending January 8, 2021. ”
Total inflows in digital asset investment products for 2021 so far total $ 2.6 billion – equivalent to 39% of the $ 6.7 billion in institutional capital that was invested in cryptographic funds during 2020 in just six weeks.
The report stated that investment product trade volumes remain high, averaging $ 670 million per day last week – representing 5.4% of Bitcoin’s total trade volume.
The gray scale remains the largest institutional asset encryption fund, with a record $ 33.4 billion in assets under management (AUM) on February 8.
02/08/21 UPDATE: Net assets under management, shares 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) February 8, 2021
Grayscale’s Ethereum Trust has grown in terms of total share in the AUM value and has now reached more than $ 5 billion, which is more than 15%. The Bitcoin Trust still contains the lion’s share of all investments, however, with 82% of the total.
CoinShares reports that 21Shares is the second largest institutional fund in weekly tickets with almost $ 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 drop to repeat the price collapse that followed the launch of Bitcoin futures in December 2017.
However, Ethereum recovered after launching the contracts, posting a new historic record of $ 1,780 on February 9th. ETH last changed hands for $ 1,750 at the time of this writing.