Ethereum attracted around 80% of the total weekly crypto inflows last week after institutional investors shifted focus towards the world’s second-largest crypto asset. ETH attracted $195 million last week, out of the total $245 million.
According to the latest report published by CoinShares, Bitcoin saw $42 million inflows last week, its lowest weekly inflows since 8 January 2021. Despite the lower weekly inflows in BTC, the report saw little evidence of profit-taking.
Institutional demand for Ethereum has been on the rise since the start of 2021. Grayscale, the world’s largest digital assets management firm, reopened its Ethereum Trust in late January and the company accumulated 108,546 ETH in the last 7 days.
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“Fund flows this week unusually focused on Ethereum with inflows into investment products totaling $245 million. $195 million of these inflows were Ethereum representing 80% of the total. We believe investors are looking to diversify and are growing increasingly comfortable with Ethereum fundamentals,” the official report states.
Ethereum’s Institutional Demand
The price of ETH registered its all-time high of $1,770 today after the launch of CME’s ETH Futures. The cryptocurrency is now up nearly 150% since the start of 2021. Grayscale has 3.04 million ETH with a total value of $5.19 billion. The asset manager purchased 2,954 Ethereum in the last 24 hours. Bitcoin remained the preferred choice of institutional investors in 2021 despite a dip in weekly crypto inflows. Grayscale has around 649,500 BTC under management with a total value of $28.8 billion.
“Bitcoin had its lowest inflows ($42 million) since the all-time highs were achieved in the week ending 8th January 2021. Despite the lower inflows into Bitcoin, we are seeing little evidence of taking profits with investors preferring to buy and hold. Taking stock of the year so far, total inflows into digital asset investment products now total $2.6 billion, compared to $6.7 billion for 2020. The crypto assets under management are now at a record $37.6 billion. Investment product trading volumes remain high,” the report mentioned.