Last week ended with “growing investor confidence” in the digital asset market, with bitcoin (BTC) in particular once again becoming a more preferred investment at the expense of Ethereum (ETH), according to data from the company. crypto-asset management. CoinShares.
According to the firm’s weekly report on digital asset fund flows, which track the inflows and outflows of regulated digital asset funds, bitcoin saw inflows of $ 69 million last week. The weekly entries marked the third consecutive week of positive flows for the asset, after suffering “the longest streak on record” earlier this year, according to the report.
Meanwhile, ETH funds registered less than a third of bitcoin’s inflows, with $ 20 million last week, according to the report.
The larger inflows into bitcoin have led the number one digital asset to take market share from Ethereum, CoinShares said, while noting that Ethereum’s market share for hedged investment products has increased from ‘a peak of 28% to 25% last week.
In addition, within a week, flows to BTC increased by 38%, while flows to ETH fell by 45%.
The fund flows tracked by CoinShares are often seen as an indicator of institutional interest in different digital assets, as many financial institutions and traditional investors prefer to hold regulated funds rather than the digital asset itself.
In terms of other digital assets, binance coin (BNB) and polkadot (DOT) were the only two to record exits, each losing $ 0.8 million.
In total, digital asset investment products saw inflows of $ 90 million last week, making it the seventh consecutive week of inflows for the sector. However, CoinShares also noted that volumes still remain relatively low at $ 2.4 billion for the week.
Latest data on fund flow marks a change from findings of report by investment banking giant JP Morgan for two weeks back. In the report, the bank said the prices of regulated bitcoin and ethereum futures on the Chicago Stock Exchange (CME) suggests growing institutional interest in ethereum at the expense of bitcoin.
Meanwhile, the price of bitcoin continued to strengthen on Monday and Tuesday as it flirted with the psychologically important $ 50,000 mark for the first time since early September. As of 09:50 UTC, bitcoin has risen 5% in the past 24 hours to trade at a price of $ 50,078. Ethereum, meanwhile, rose 2% to $ 3,428 over the same period.
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(Updated at 09:51 UTC with the latest market data.)