Ethereum has the attention of major institutional players, with ETH-related investment products attracting $113 million – nearly 50% of the total of crypto inflows recorded last week.
Want to acquire Bitcoin, Ethereum and other crypto? Start here.
The latest weekly research report by Coinshares revealed that cryptocurrency investment products attracted a total of $4.2 billion inflows this quarter – the highest level on record. As it happened, the popularity of Ethereum-related investments surged as institutions set out on an accumulation spree of the world’s second-largest cryptocurrency (and decentralised platform).
CoinShares outlined that the digital investment products closed with a total of $55.8 billion in assets under management (AUM) on Friday. Of the investment-level institutional firms, Grayscale remained the largest holder with more than $43 billion worth of digital AUM.
“Fund flows data highlighted Ethereum as being increasingly popular amongst investors with inflows of $113 million last week, comprising almost 50% of total flows. Analysis of investment providers that simply track the price of digital assets (passive) versus those that have active investment strategies highlight investors continues to choose passive, with assets under management of $54.1 billion and $786 million respectively,” CoinShares reported.
With the upcoming EIP-1559 launch, retail and institutional investors are considering ETH as a tech play with deflationary properties.
The cryptocurrency is up more than 120% since the start of 2021. Grayscale has 3.18 million ETH under management valued at $5.5 billion in aggregate. The crypto asset manager has accelerated its accumulation of Ethereum as the company purchased over 48,000 ETH in the last 30 days. The CEO of Grayscale Michael Sonnenshein noted the growing interest of institutional investors in Ethereum-related investment products, with the only major concern being an incoming supply crisis.
Meanwhile, ETH whales continue to accumulate the asset as supply across exchanges plummets. According to the latest data published by crypto analytics firm, Santiment, Ethereum whales hold 68% of the total ETH supply.
Subscribe to the semi-weekly newsletter for regular insight into bitcoin and crypto. Go on. It’s free.
Join the telegram channel for updates, charts, ideas and deals.
Did you like the article? Share it!