Institutional investors load up ETH, with its share of AUM hitting a new record
The total market capitalization of cryptocurrencies, commonly referred to as the “market cap”, has continued to grow, as increased mainstream awareness of cryptocurrencies and their importance continues to drive the demand for digital currency related products. The market cap of the world’s leading cryptocurremcy, Bitcoin, has skyrocketed from around $17 billion at the beginning of 2017 to more than $150 billion today.
The value of $5 billion in institutional funds is a new record for Ethereum’s blockchain – and not by a small margin. According to Coinmarketcap, the total value of ETH’s network value has hit $16.9 billion. That’s up from $15.3 billion in January, and $9.2 billion around the time of the crowdsale.
As the second largest crypto asset by market capitalization, it’s not surprising that Ethereum continues to be a magnet for institutional investors.. Read more about retail investors meaning and let us know what you think.
Institutional demand for Ethereum continues to grow, and Ethereum-based products now account for more than a quarter of assets under management (AUM) in crypto investment products. According to CoinShares’ weekly digital assets fund flow report for June 1, there were significant institutional inflows of $74 million last week as investors sought to capitalize on the impact of the recent meltdown, which saw many crypto assets lose more than 50% of their value. More than 63% of institutional inflows were invested in ether products, accounting for $46.8 million of the total. Ether products now account for 27% of total assets under management in cryptocurrency investment products, the highest share to date. There were also strong inflows of products offering exposure to multiple crypto assets ($11.1 million), as well as funds focused on Cardano ($5.2 million), XRP ($4.5 million) and Polkadot ($3.8 million). Outflows from bitcoin products slowed, with about $4 million leaving the markets – down from last week’s $110.9 million outflow. In the past three weeks, $246 million has been withdrawn from BTC investment products. Although bitcoin’s 30-day inflow of $47.9 million is now about a third of ether’s $147.7 million, bitcoin still dominates inflows for the year with nearly $4.4 billion, compared to $973 million for ether. However, Ethereum’s recent momentum has led to new speculation about whether Ethereum is about to overtake Bitcoin. Ethereum is currently outperforming cryptocurrencies in terms of transactions, volume, fees and trading volume. According to CoinGecko, Ether is currently the second most traded crypto asset with a daily volume of $38.8 billion, behind Tether with $103 billion. In the past 24 hours, BTC has changed hands for about $32.9.