Digital assets manager CoinShares says institutional money is going into leading smart contract platform Ethereum (ETH) ahead of its anticipated transition to proof-of-stake.
In its latest Digital Asset Fund Flows Weekly report, CoinShares finds Ethereum-based institutional investment vehicles have enjoyed seven consecutive weeks of inflows.
“Ethereum saw inflows totaling $16 million and is enjoying a near seven consecutive week run of inflows totaling $159 million. We believe this turn-around in investor sentiment is due to greater clarity on the timing of The Merge where Ethereum shifts from proof-of-work to proof-of-stake.”
Overall, the digital assets investment market saw $3 million in net inflows last week.
“Digital asset investment products saw inflows totaling US$3m last week marking the 6th consecutive week of inflows that total US$529m, representing 1.7% of total assets under management (AuM). Despite the crash in prices in Q2 2022, 32 new investment products were launched, primarily in altcoins, second only to the peak of product launches in Q4 2021 at 33.”
CoinShares suggests investor buying behavior indicates the sentiment surrounding Bitcoin (BTC) is that it’s hit its bottom.
“Bitcoin saw very minor outflows totaling $8.5 million while short-Bitcoin investment products saw a record outflow totaling $7.5 million, and for the second consecutive week suggesting investors believe Bitcoin prices have troughed.”