For a long time, institutional investors were overwhelmingly negative about Ethereum’s potential. Their initial interest in the second largest crypto by market cap was quickly tempered by the realisation that it was underperforming. Ethereum, on the other hand, has recently seen an increase in its inflows. This suggests a change in attitude among these huge investors.
Investment in Ethereum Soars
The amount of money being invested in Ethereum has increased significantly during the past several weeks. Though the amounts were nowhere like those seen during the bull market, they did halt the digital asset’s more than two months of continuous outflows.
With Ethereum’s inflows totaling $8 million last week, it was business as usual. The amount may seem small, but it is still money coming into the network. The digital asset first reported $2.5 million in inflows the week prior, but the majority of the money came in the week before that.
This week, revised estimates showed that the original estimate was not only too low but also incorrect by more than $100 million. Earlier this week, updated figures revealed that ETH had received $120 million in investments in a single week—the highest weekly inflow in a year.
This shows how institutional investors’ views on crypto have shifted. As the much-anticipated Merge draws near, investors of all sizes are feeling bullish and putting more money into the digital asset.
Week of Funding Flows
Fortunately, Ethereum wasn’t the only crypto to have a week of gains. The optimistic mood had permeated nearly all segments of the crypto market, and buyers had responded accordingly. Money kept coming in, beginning with Bitcoin and expanding to other digital asset investment products.
Both the previous and current weeks had seen new money pour into Bitcoin, with the most recent week seeing $16 million enter the crypto’s ecosystem. Corrected data revealed a substantially greater influx rate for the previous week with $206 million in total for Bitcoin, just as it did for Ethereum. Long Bitcoin was not the only direction to see more funds, as short Bitcoin kept up its winning streak with $600,000.
The week’s biggest winners were investment products related to digital assets, which received $27 million. Last week’s inflows did not bring the entire asset under management back up to $30 billion. Furthermore, Europe was the primary source of funds, with Switzerland receiving $16 million in the most recent reporting period. There would be $9 million less coming into the US and $5 million less coming into Germany.
This information reveals how traders feel about the market in light of the current upswing. It is unclear, however, whether the inflows will continue into the new week in light of the recent drop in prices.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”
