Ethereum, the world’s second-largest cryptocurrency, is gaining the attention of major institutional investors around the world. ETH-related investment products attracted $113 million last week, which is almost 50% of the total cryptocurrency inflows.
According to the latest weekly digital asset inflows report published by CoinShares, the ETH-related investment products attracted a total of $4.2 billion inflows in this quarter and is also the highest level on record. The popularity of Ethereum is growing as institutions are accumulating the cryptocurrency in large amounts.
CoinShares mentioned that the digital investment products closed on Friday with a total of $55.8 billion in crypto assets under management. Grayscale remained the largest institutional holder of cryptocurrency products with more than $43 billion worth of digital assets under management.
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“Fund flows data highlighted Ethereum as being increasingly popular amongst investors with inflows of $113 million last week, comprising almost 50% of total flows,” CoinShares mentioned in the report.
Popularity of Ethereum
Retail and institutional investors have started considering Ethereum as a store of value. The cryptocurrency is now up more than 120% since the start of 2021. Grayscale now has nearly 3.18 million ETH under management with a total value of more than $5.5 billion. The crypto asset manager has accelerated its accumulation of Ethereum as the company purchased more than 48,000 ETH in the last 30 days. Michael Sonnenshein, CEO of Grayscale mentioned the growing interest of institutional investors in Ethereum-related investment products. The only major concern about Ethereum is its supply crisis. ETH whales are accumulating the digital asset, and its supply at major exchanges is plunging. According to the latest data published by crypto analytics firm, Santiment, Ethereum whales now hold more than 68% of the total ETH supply.
Ethereum is currently trading near $1,800 with a market cap of more than $200 billion. The world’s second-largest digital asset now has a market dominance of more than 12%, its highest level in weeks.