Institutional Investment Funds Flow Back Into Ethereum

Institutional crypto fund manager CoinShares has released its weekly report in which it noted that Ethereum (ETH) has finally broken its 9-week spell of capital investment outflows with inflows totaling $21 million.

The figure represents around 28% of the total inflow into crypto investment products for the week ending Feb. 11. Around $75 million returned to digital asset funds for the period, the report added.

European investment products dominated as those in the United States actually saw overall outflows for the week.

Ethereum Back in Favor

CoinShares noted that Bitcoin (BTC)-based investment products had a slightly higher inflow with $25 million but the notable thing with Ethereum was the two-month trend reversal.

The total inflow for the past four weeks has been $209 million but this is just a fraction of the amount of capital that went into institutional crypto asset funds in Q4, 2021. The recent market rally appears to have spurred professional investors which are usually a little later in entering and exiting markets than their retail brethren.

“Blockchain equity investment products saw the largest flows since mid-December with inflows totalling US$69m last week.”

Multi-asset funds also saw an inflow of $18.7 million for the week with recently created altcoin investment products for Terra (LUNA), Tezos (XTZ), and Cosmos (ATOM) all getting investment inflows.

The breakdown by fund showed that ProShares had the largest inflow with $45 million while Purpose had a large outflow of $75 million. The world’s largest crypto asset fund manager, Grayscale, remained flat in terms of asset flows with $37 billion in assets under management.

Crypto markets have gained 4.2% over the past 24 hours with total market capitalization topping $2 trillion once again.

ETH Price Outlook

Ethereum prices have increased by 5.5% over the past 24 hours topping $3,000 again at the time of writing. ETH hit an intra-week low of $2,850 on Monday but has rebounded since to notch up a 12.6% gain over the past fortnight.

Ethereum is currently trading down 38% from its Nov. 10 all-time high of $4,878, however.