A new report from analytics firm CoinShares shows that although the market decline is not over, prices are now at a level where stock market investors are once again showing interest in digital asset funds.
a report good Published yesterday from CoinShares shows that many funds have started seeing net inflows after weeks of record outflows in the wake of a crippling, market-wide crypto dip. Overall, older markets invested $74 million in crypto investment vehicles, although not all products showed signs of strength.
The cryptocurrency is showing inflows after record outflows over the past two weeks.
– Open. (@cryptounfolded) 2 June 2021
While some analysts are Calling bitcoin for at least $16,000 per BTCBitcoin products were among the weakest performers, with $4 million in net outflows. The report noted that altcoins – especially the more eco-friendly proof-of-stake altcoins – were strong performers with over $3 million inflows each from Cardano, Ripple and Polkadot funds.
However, the real star of the report is Ethereum. ETH vehicles saw a total inflow of $47 million, making up the majority of pure digital asset fund investments and increasing the dominance of the ETH vehicle market to 27%.
Investors’ bullish outlook on the asset comes after a bullish report from academic and institutional finance research desks. Last week both the University of Pennsylvania and Goldman Sachs wrote research Arguing for Ethereum as a Store of Value, partly because of its importance to the DeFi ecosystem.
The world’s largest Layer One smart contract platform also has many technological advancements and headwinds on the horizon. layer two scaling solution Arbitrum recently went live with a protected launch, and the long-awaited gas duty overhaul of EIP-1559 is scheduled for later this year, as well as The much-anticipated transition to a proof-of-stake consensus model.