A report said that ETH leads up to the launch of CME futures, with Ether products representing 80% of last week’s institutional crypto inflows.
It has been reported that the $245 million crypto inflow last week, 80% of it or $195 million was invested into Ether products ahead of the launch of the Chicago Mercantile Exchange Ethereum futures contracts on February 8.
However, Bitcoin had $41.9 million of the weekly flows, with a year-to-date total of $2.02 billion, as the report suggested that investor diversification was starting to occur by adding that there was little evidence of taking profits with investors preferring to buy and hold.
The report stated:
“We believe investors are looking to diversify and are growing increasingly comfortable with Ethereum fundamentals. Bitcoin had its lowest inflows (US$42m) since the all-time highs were achieved in the week ending 8th January 2021.”
Likewise, the total inflows into digital asset investment products for 2021 now total $2.6 billion, equating to 39% of the $6.7 billion in institutional capital that was invested in crypto funds during 2020 in just six weeks. The report also stated that investment product trading volumes remain high, averaging $670 million per day last week, representing 5.4% of total Bitcoin trading volumes.
It has been analyzed that CoinShares reports that 21Shares is the second-largest institutional fund by weekly inflows with almost $21 million, followed by WisdomTree with $11.5 million. Many pundits expected the launch of CME’s Ether futures would be followed by a sharp crash to repeat the collapse in prices that followed the launch of Bitcoin futures in December 2017.
Thus, Ethereum rallied after contracts launched by posting a new all-time high of $1,780 today.
Source: Cointelegraph