A new analysis shows: Ethereum's market share in institutional investment products is growing massively.
Ethereum market share rises to 26
After the huge rise from 2,725 dollars to 3,230 dollars, Ethereum just faced a price decline at the same time as Bitcoin: The second-ranked cryptocurrency by market capitalisation had to give up around 2.4% in the last 24 hours. ETH is currently (at the time of this writing) trading at $3,134 - still up almost 21% for the week.
A new report by crypto asset manager CoinShares suggests that the setback could only be temporary. According to the report, the market share of Ethereum (ETH) in institutional investment products is growing - and quite rapidly.
CoinShares in Weekly Report Vol. 41:
"ETHEREUM'S MARKET SHARE IS RISING RAPIDLY AGAIN AND NOW ACCOUNTS FOR 26% OF INVESTMENT PRODUCTS, UP FROM JUST 11% AT THE START OF 2021."
Ethereum, for example, saw institutional inflows of $2.8 million in the first week of August, according to CoinShares. Other cryptocurrencies also saw inflows in the first week of August, including Ripple's XRP, Bitcoin Cash (BCH), Cardano (ADA) and Litecoin (LTC).
Ripple saw inflows of $1.1 million in the first week of August. Bitcoin Cash saw a total of $1 million, while Polkadot, Litecoin and Cardano saw inflows of less than $1 million in the same period.
Most of the outflows occurred last week in Bitcoin, CoinShares comments - although BTC has still seen higher inflows than Ethereum over the year:
"DESPITE POSITIVE PRICE MOVEMENTS, BITCOIN CONTINUED TO BEAR THE BRUNT OF OUTFLOWS, WHICH TOTALLED $33 MILLION LAST WEEK."
More and more listed fund and investment products
The analysts also add: recently, more and more funds/investment products have also been listed.
"A RECORD 37 WERE LAUNCHED THIS YEAR, COMPARED TO THE PREVIOUS HIGH OF 30 IN 2018. MOST OF THESE WERE ACTIVELY MANAGED FUNDS, ALTHOUGH THEIR MARKET SHARE REMAINS VERY SMALL AT 2.5% COMPARED TO PASSIVE INVESTMENT PRODUCTS."
You can download the full CoinShares report here.
So after Bitcoin, it seems that institutions are now increasingly interested in Ethereum. In addition, there are more and more voices expecting a so-called "flippening". This means that Ethereum will overtake Bitcoin in terms of market capitalisation. The US investment bank Goldman Sachs, for example, assumes such a development in a report. According to an analysis, banking giant JP Morgen also believes that the staking introduced with ETH 2.0 can become a significant source of income for institutional investors.
Popular trader "Pentoshi" even reveals by when Ethereum will overtake BTC: by the end of 2022 at the latest. He expects the "biggest supply shock that has ever happened". Pentosh1:
I believe this to be true. I think $ETH will flip $BTC by marketcap by the end of 22'. Issuance going down by 90% (begins on Aug 4) Goldman looking into it's staking yields, NFT's DeFi, Revenue fees > BTC and largest supply shock ever happening. Uptrend since 2019 and looks ready