Investors have been cooled by the fall of Bitcoin. Capital is now focused on ETH.
Institutional investors seem less and less convinced of Bitcoin’s ability to rise to new heights. The crypto crack in May had a devastating effect on their investments.
Many investors have preferred to take the exit in recent weeks, although this trend is slowing. In the previous week, flows into BTC products were negative (-$4 million).
Seven days earlier, the balance was negative $110.9 million and $246 million over the last three weeks. Bitcoin is definitely out of favor right now according to CoinShares’ Digital Asset Fund Flows Weekly report.
However, not all cryptocurrencies are doing so well. Although it too has fallen heavily, Ethereum continues to convince institutional investors. Crypto investment products totaled $74 million more last week.
And Ether is taking the lion’s share of those assets under management. In fact, more than 63% of institutional inflows went into Ether products. That’s $46.8 million in total.
As a result, Ether products now account for 27% of the combined assets under management of cryptocurrency investment products. This is the highest share to date. Other cryptos are benefiting from the distrust of BTC.
CoinShares is seeing an increase in flows into products offering exposure to multiple crypto assets ($11.1 million). Funds targeting Cardano show $5.2 million. This indicator is $4.5 million for XRP and $3.8 million for Polkadot.
For Bitcoin, not all indicators are turning red though. Over 30 days, flows remain positive for BTC products with inflows of $47.9 million. This is however just one third of Ether’s balance sheet ($147.7 million).
For the year as a whole, Bitcoin maintains a very comfortable lead at around $4.4 billion. For its eternal rival, Ether, that figure stands at $973 million. In terms of daily transaction volume, Ethereum, on the other hand, is already surpassing BTC with $38.8 billion versus $32.9 billion.