Coinshares has published a summary of the inflows and outflows of investments in popular ETPs, mutual funds and OTC trusts with reference to all major digital assets.
While the cryptocurrency market has seen some volatility over the past week, Ethereum’s (ETH) market share has hit an all-time high of 27%. This new record comes from Ethereum announcing that it will be promoting with two hard forks – London and Altair.
Proof-of-Stake coins remain popular, with large inflows in cardano (ADA), polkadot (DOT) and XRP of $ 5.2 million, $ 3.8 million and $ 4.5 million, respectively. These influxes echo the sentiment of Cardano founder Charles Hoskinson, who believes the crypto industry has split off from bitcoin (BTC).
The growing popularity and movement towards confirmation of the share of coins has intensified after Elon Musk raised concerns about the environmental impact of bitcoin mining last month. In particular, it is concerned about the increasing use of fossil fuels, especially coal. While the note mentions the benefits of cryptocurrencies, Musk said it shouldn’t be at the expense of the environment.
There is good news for the industry as investors increased their positions last week with a net inflow of digital assets of $ 74 million. The volatility of the previous weeks resulted in a cash outflow of $ 151 million in two weeks. Also, the exits seen this week are mostly focused on Bitcoin products. While Bitcoin investment product inflows will remain positive at $ 4.4 billion in 2021, it has lost $ 246 million in the past three weeks.
The inflows and outflows of investment in digital assets allegedly indicate investor sentiment and market confidence. Trust in Ethereum demonstrates a clear shift towards greener digital assets following the environmental concerns of bitcoin.
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