Ethereum Records “Unusual” 4x More Inflows than Bitcoin: CoinShares Report
80% of all inflows went into Ether last week, ahead of the listing of its futures on the CME as investors look to diversify and get “increasingly comfortable with Ethereum fundamentals.”
The flow of funds has been “unusually” focused on Ethereum last week, as per asset manager Coin Shares’ latest weekly report.
Out of the total $245 million inflows into digital assets investment products, 80% of these at $195 million went into Ether, ahead of listing its futures on the Chicago Mercantile Exchange (CME).
Ether’s futures started trading on the CME Sunday evening, and today it hit a new ATH above $1,800. The first day of trading for CME's ETH Futures ended with over $30 million in volume and $20 million in open interest, as per data source Arcane Research.
“We believe investors are looking to diversify and are growing increasingly comfortable with Ethereum fundamentals,” said James Butterfill, investment strategist at CoinShares.
Year-to-date flows for the digital asset has reached $260 million, compared to Bitcoin's more than $2 billion.
However, despite the lower inflows into Bitcoin — just $41.9 million this week, which is the lowest since all-time highs seen in early January — no profits have been taken off the table with investors preferring to buy and hold, notes the report.
Overall, in this year so far, total inflows into digital asset investment products now total $2.45 billion, compared to $6.7 billion for the entire 2020.
Grayscale, the world’s largest digital asset manager, posted an AUM of $30.1 billion last week, with the second-largest crypto fund CoinShares managing $3.7 billion worth of assets, both up from $27.4 billion and $3.4 billion respectively in late January.