Ethereum investment products hit market-share high of 27%, report says
Ethereum has hit a market-share high of 27% of all digital asset investment fund products following recent price corrections. The post Ethereum investment products hit market-share high of 27%, report says appeared first on Forkast.
- By Michelle Lim
- June 2, 2021
- 1 minute read
Ethereum has hit a market-share high of 27% of all digital asset investment fund products following recent price corrections, according to a digital asset fund flows report by CoinShares, Europe’s largest digital asset investment firm.
Fast Facts:
- Institutional investment into proof-of-stake altcoins — coins other than Bitcoin — amid environmental concerns over the oldest crypto’s carbon footprint, saw sustained momentum, with positive inflows into Cardano (US$5.2 million), XRP (US$4.5 million) and Polkadot (US$3.8 million), the report said. Proof-of-stake cryptocurrencies use a more energy-efficient consensus mechanism to secure blockchains than the proof-of-work consensus, which requires enormous amounts of computing power.
- Inflows into digital asset investment products last week were positive, at US$74.4 million, compared to a net outflow of US$97 million the week before, the report said.
- But institutional investment sentiment on Bitcoin remains weak, with outflows of US$4 million, down from outflows of US$110.9 million the week before.
- Ethereum — the second largest cryptocurrency by market value — has seen increasing institutional adoption this year, with asset managers launching or applying to launch exchange-traded funds for Ethereum. Most stablecoins and decentralized finance protocols also operate in the Ethereum ecosystem. Investors have been positive about Ethereum thanks to its “London” upgrade, due to take place next month, which is expected to address the network’s high transaction fees and add deflationary pressure to the supply of Ethereum.
Michelle Lim
Michelle is a Producer at Forkast. Prior to joining the team, she wrote for CNN and served with the Singapore Foreign Service. She holds a Master of Journalism from the University of Hong Kong and a Bachelor of Business Administration from the National University of Singapore.
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