Crypto CoinShares asset manager reported that investment flows to institutional cryptocurrency funds rose last week, with most of them coming from Ethereum.
The report notes that of the $ 245 million in cryptocurrency inflows last week, 80%, or $ 195 million, was invested in Ether products before the Chicago Mercantile Exchange’s Ethereum futures contract launched on February 8th.
By comparison, Bitcoin had $ 41.9 million in weekly flows, for a year-to-date total of $ 2.02 billion. Investor diversification is beginning to take place, the report noted, adding that there is little evidence of profit taking as investors prefer to buy and hold.
“We believe that investors are looking to diversify and become increasingly comfortable with the fundamentals of Ethereum. Bitcoin recorded its lowest inflows ($ 42 million) since reaching an all-time high in the week ending January 8, 2021.”
Total inflows into digital asset investment products for 2021 so far reach $ 2.6 billion – equivalent to 39% of the $ 6.7 billion in institutional capital invested in crypto funds during 2020 in just six weeks.
The report stated that trading volumes for investment products remained high, averaging $ 670 million per day last week – representing 5.4% of total bitcoin trading volumes.
Grayscale remains the largest institutional crypto asset fund with $ 33.4 billion in Assets Under Management (AUM) as of February 8th.
02/08/21 Update: Net assets under management, holdings per share, and market price per share for our investment products.
Grayscale February 8, 2021
Grayscale’s Ethereum Trust is growing in terms of total share of AUM numbers, and has now reached over $ 5 billion, which equates to over 15%. The Bitcoin Trust still contains the lion’s share of all investments, with 82% of the total.
CoinShares reports that 21Shares is the second largest institutional fund by weekly flows of around $ 21 million, followed by WisdomTree with $ 11.5 million.
Many experts have predicted that the launch of Ether futures on the Chicago Mercantile Exchange will be followed by a severe collapse of the repeat price collapse that followed the launch of Bitcoin futures in December 2017.
However, Ethereum rallied after the contracts were launched, and hit a new all-time high of $ 1,780 on Feb.9. ETH recently traded for $ 1,750 at the time of writing.