Crypto asset manager CoinShares has reported that the inflow of investment into institutional cryptocurrency funds surged last week, most of which was Ethereum.
The report states that of last week’s $ 245 million in crypto inflows, 80% or $ 195 million was invested in Ether products prior to the launch of the Chicago Mercantile Exchange Ethereum futures contracts on February 8.
In comparison, Bitcoin had $ 41.9 million of weekly flows, totaling $ 2.02 billion since the start of the year. The report suggested investor diversification was beginning to set in, adding that there was little evidence of taking profits with investors who preferred to buy and hold.
“We believe investors are looking for diversification and are increasingly comfortable with the fundamentals of Ethereum. Bitcoin had the lowest inflow (US $ 42 million) ever since record highs were reached in the week ending January 8, 2021. “
The total inflows in digital asset investment products for 2021 are now $ 2.6 billion – equivalent to 39% of the $ 6.7 billion of institutional capital invested in crypto funds in 2020 in just six weeks.
According to the report, trading volumes of investment products remain high, averaging $ 670 million per day last week, representing 5.4% of Bitcoin’s total trading volumes.
Grayscale remains the largest institutional crypto asset fund with a record $ 33.4 billion in assets under management (AUM) on Feb. 8.
02/08/21 UPDATE: Net assets under management, positions per share and market price per share for our investment products.
– Grayscale (@Grayscale) February 8, 2021
Grayscale’s Ethereum Trust has grown in terms of the total share of the AUM figure and has now reached more than $ 5 billion, which is more than 15%. However, the Bitcoin Trust still holds the lion’s share of all investments, with 82% of the total.
CoinShares reports that 21Shares is the second largest institutional fund with a weekly inflow of nearly $ 21 million, followed by WisdomTree with $ 11.5 million.
Many experts expected the launch of CME’s Ether futures to be followed by a sharp crash to repeat the collapse in prices following the December 2017 launch of Bitcoin futures.
However, Ethereum rebounded after the launch of contracts, setting a new all-time high of $ 1,780 on February 9. ETH last changed hands for $ 1,750 at the moment of writing.