Ethereum Fund Inflows Nearly Double Over Last Week as Investors Switch Focus: CoinShares
Last week’s highlight has been Ethereum than Bitcoin as fund flows doubled from $87 million to $160 million, as per CoinShares weekly fund flow report.
While Bitcoin has captured institutional investors' attention, high net worth individuals, family offices, and insurance companies, Ethereum is also trying to follow the leading cryptocurrency.
Digital asset managers saw record inflows for its Ethereum investment products, which now represents 7% of total investment product assets under management (AuM), much higher than Bitcoin’s 0.5% AUM. The CoinShares report states,
“Investors, in recent weeks, have switched focus to Ethereum with the largest weekly investment product inflow on record of US$160m, far surpassing the previous week’s record inflows of US$87m.”
Bitcoin meanwhile saw inflows of US$424m last week, despite the jump in volatility. However, investors have been making a shift to Ethereum recently, as seen in increased investor participation in the second-largest cryptocurrency.
Grayscale, which has 2.94 million ETH in its holdings, didn’t accumulate any ETH during last week after adding 13,000 ETH the week before. The premium on ETHE, meanwhile, is trending up 147%. However, the Grayscale Ethereum Trust (ETHE) growth over the year has been “impressive.” Vetle Lunde, an analyst at Arcane Research, said,
“In January, the ether holdings of the trust sat below 0.5m ETH. Now the holdings of the trust are approaching 3m ETH. The holdings of ETHE sits at 2.5% of the total circulating ETH supply.”
Ether options total open interest is up 50x this year, getting closer to $1bln pic.twitter.com/CHZeBqhaDe
— skew (@skewdotcom) December 15, 2020
On the other hand, the amount of ETH locked in the DeFi and ETH 2.0 deposit contract increases. DeFi currently has 7.1 million ETH and 1.48 million ETH, totaling 284.3% of the required threshold to trigger the Beacon Chain, and are deposited for staking.