Ethereum Investment Products Reach Highest Market Share Up To 27%

Ethereum has achieved the highest market share of 27% of all digital asset investment fund products following the recent price correction, according to a digital asset fund flow report by CoinShares, Europe’s largest digital asset investment firm.

Institutional investment into proof-of-stake altcoins other than Bitcoin, is seeing sustained momentum, with positive inflows into Cardano (US$5.2 million), XRP (US$4.5 million) and Polkadot (US$$3.8 million ), says the report. Proof-of-stake cryptocurrencies use a more energy-efficient consensus mechanism to secure the blockchain than proof-of-work consensus, which requires a large amount of computing power.

Inflows into digital asset investment products last week were positive, amounting to US$74.4 million, compared with a net outflow of US$97 million in the previous week, the report said.

But institutional investment sentiment in Bitcoin remained subdued, with outflows of US$4 million, down from outflows of US$110.9 million in the previous week.

Ethereum is the second largest cryptocurrency by market value — it has seen increased institutional adoption this year, with asset managers launching or applying to launch exchange-traded funds for Ethereum.

Most stablecoins and decentralized financial protocols also operate on the Ethereum ecosystem. Investors have been positive about Ethereum thanks to the “London” upgrade, which will take place next month, which is expected to address high network transaction fees and add deflationary pressure on Ethereum supply.

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