ETH accounted for 80% of institutional crypto flows last week

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Crypto asset manager CoinShares reported that inflows of investments in institutional cryptocurrency funds increased last week, and the majority of them were Ethereum.

The report states that of the $ 245 million crypto entering last week, 80%, or $ 195 million, was invested in Ether products ahead of the Chicago Mercantile Exchange Ethereum futures launch on February 8.

By comparison, Bitcoin had $ 41.9 million in weekly flows, with a total of $ 2.02 billion since the start of the year. The report suggested investor diversification was starting to happen, adding that there was little evidence of profit taking with investors preferring to buy and hold.

“We believe investors are looking to diversify and are increasingly comfortable with Ethereum’s fundamentals. Bitcoin had its lowest entries ($ 42 million) since all-time highs were hit during the week ending January 8, 2021. “

Total inflows into digital asset investment products for 2021 so far now total $ 2.6 billion, which equates to 39% of the $ 6.7 billion in institutional capital that has been invested in crypto funds in 2020 in just six weeks.

The report says that investment product trading volumes remain high, averaging $ 670 million per day last week, representing 5.4% of total Bitcoin trading volume.

Grayscale remains the largest institutional crypto asset fund with a record assets under management (AUM) of $ 33.4 billion as of February 8.

Grayscale’s Ethereum Trust has grown in terms of its total share of the AUM figure 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 in terms of weekly admissions with nearly $ 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 collapse to repeat the price collapse that followed the launch of Bitcoin futures in December 2017.

However, Ethereum recovered after the contracts were launched, posting a new all-time high of $ 1,780 on February 9. ETH last changed hands for $ 1,750 at the time of writing.