Ethereum might have been struggling with the recent market, but Institutional investors have remained unfazed for the most part. This cohort of market players have only recently started favoring Ethereum more than Bitcoin and by the looks of it, this sentiment is here to stay for some time.
According to the latest ‘Digital Asset Fund Flows Weekly’ report by the digital asset management firm CoinShares, Ethereum investment products have gained massive traction. The subsequent market corrections led many investors to add positions with net flows into investment products of $74 million last week. Ethereum emerged as a clear winner.
Ethereum, Alts Gain Traction, Bitcoin Trails Behind
Well over 60% of institutional inflows were induced into Ethereum products, as the digital asset saw a resumption in inflows which summed up to a total of $47 million last week.
Along the same lines, the report stated,
“The price correction had a minor impact on investment flows the previous week, but this looks to have recovered, with all product providers seeing inflows. Ethereum achieved its highest share, peaking at nearly 27% of all investment products last week.”
Things were not the same for Bitcoin as institutional investors continue to exit the king coin. Coinshares stated that outflows remained focused on BTC which accounted for $4 million this week alone. With this, the total outflow in the past three weeks totaled $246 million which reflected 0.8% of the combined assets under management [AUM].
The recent inflows to Bitcoin might have slowed down owing to back-to-back crashes and the outbreak of debates with regards to the mining impact on the environment, the total inflow figure, however, remained positive in terms of year-to-date. According to the stats, it was found to be at around $4.4 billion.
The recent figure for investment product flows demonstrated that products offering exposure altcoins have also risen to prominence. Especially, proof-of-stake coins such as Cardano [ADA], Polkadot [DOT], and XRP have become quite popular and saw inflows of $5.2 million, $3.8 million, and $4.5 million respectively.