Ethereum Dominates Institutional Capital Flows with Rising Sentiment, Reveals CoinShares Report

Institutional Investors Flock to Ethereum (ETH) Amidst Crypto Sentiment Uplift: CoinShares Report

Institutional investors are displaying a growing interest in Ethereum (ETH) as the overall sentiment in the crypto market takes a positive turn, reports leading digital assets manager, CoinShares. According to their latest Digital Asset Fund Flows weekly report, ETH is emerging as a preferred choice among institutional investors even as the crypto markets witnessed their first week of outflows in the past five weeks.

During the past week, digital asset investment products experienced minor outflows, totaling US$6.5 million, which is in stark contrast to the four previous weeks that witnessed impressive inflows of US$742 million. CoinShares also noted a decline in trading volumes for the week, reaching US$1.2 billion compared to the preceding week’s US$2.4 billion, placing it below the average weekly volume for the year.

Notably, the negative sentiment mainly emanated from North American investors, who accounted for 99% of the outflows, totaling US$21 million. However, this was balanced by inflows of US$12 million into Switzerland and US$1.9 million into Germany.

Bitcoin (BTC) and short-BTC investment products also faced outflows during the week. Bitcoin, as has been the trend recently, witnessed US$13 million in outflows, while short bitcoin investment products faced outflows for the 13th consecutive week, amounting to US$5.5 million.

Additionally, multi-asset investment products and Litecoin (LTC) faced outflows of $0.4 million and $0.3 million, respectively, during the same period.

In contrast, Ethereum (ETH) investment products took the lead with substantial inflows amounting to $6.6 million. Alongside ETH, other cryptocurrencies also attracted significant interest from investors. XRP products saw $2.6 million of inflows, while Solana (SOL), Uniswap (UNI), and Polygon (MATIC) each witnessed inflows of $1.1 million, $0.7 million, and $0.7 million, respectively.

CoinShares’ report sheds light on the shifting preferences of institutional investors, who are now turning their attention towards Ethereum and other cryptocurrencies. The positive sentiment surrounding ETH, as well as the flow of institutional capital into various digital assets, indicates a potential upswing in the crypto market despite the recent outflows.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.