2021-08-10 07:38:25

Ethereum Investment Market Share Hits 26% Amid Fund Outflows

Despite a recent recovery in crypto prices, digital asset investment products last week saw outflows of US$26 million, according to CoinShares, Europe’s largest digital asset fund manager. It was the fifth consecutive week in which institutional money flowed out of cryptocurrencies, mainly Bitcoin.

Fast facts

  • Bitcoin — the largest cryptocurrency by market value — bore the brunt of the sell-off, CoinShares reported, with outflows of US$33 million. Nonetheless, year-to-date inflows remain high, at US$4.2 billion. Bitcoin has been on a two-week upward trend, and today crossed US$46,000 for the first time since May 17, according to CoinGecko data.
  • Ethereum, the second-largest cryptocurrency by market value, saw small inflows of US$2.8 million. Ethereum’s market share has risen rapidly and now accounts for 26% of investment products, compared to 11% at the beginning of 2021, according to CoinShares. Just last week, Ethereum successfully completed its major “London” upgrade to bring more predictable transaction (“gas”) fees to Ethereum and reduce Ether’s supply, with a portion of Ether that previously went to miners now to be “burned” or destroyed. Some analysts have said that this could lead to an increase in Ether’s price.
  • Altcoins XRP, Cardano and Polkadot also saw minor inflows of US$1.1 million, US$0.8 million and US$0.4 million, respectively. Multi-asset investment products reported inflows of US$0.8 million.
  • With recent price increases, total investment product assets under management reached US$50 billion, the highest level since mid-May, CoinShares reported.
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