Ethereum
Ethereum funds attract highest inflows since March
Institutions invested $69 million in this asset last week.
Large entities are gearing up for Ethereum again, according to the latest Digital Asset Fund Flows Weekly r from CoinShares.report.
Funds holding the asset had their best week since March, recording $69 million in purchases and bringing year-to-date inflows to $81 million. Figures like these stand in stark contrast to last year, when CoinShares called Ethereum the “least favorite asset“.
“It’s too early to tell,” James Butterfill, head of research at CoinShares, told The Defiant, “but sentiment has definitely improved and it’s coming off a few years of very weak sentiment relative to Bitcoin or Solana.”
Butterfill, however, put a damper on expectations of immediate positive price action for ETH.
“We may well see a repeat of bitcoin outflows at the start of the ETF launch phase in July, as many investors have been locked into the Grayscale ETH product in recent years due to the steep discount to value liquidative, once converted into an ETF. and becomes more liquid, many investors may decide to sell at that time,” he said.
Ethereum fell 5% to $3,499 today. The asset has gained 20% over the past 30 days.
ETH Price – CoinGecko
According to the June 10 report, institutions added $2 billion in digital assets to their balance sheets, primarily in Bitcoin. Entities have purchased over $1.9 billion worth of BTC over the past seven days.
These figures mark the fifth consecutive week of accumulation, with total inflows reaching $4.3 billion.
“Institutions appear to be treating Bitcoin less as a speculative asset and more as a diversification tool, especially given the high correlation between stocks and bonds,” Butterfill noted. “They are buying and holding more and more Bitcoin, as indicated by minimal outflows from ETPs this year.”
Grayscale continues to surprise
For Butterfill, the biggest shock of the last seven days was Grayscale’s fringe releases.
After the fund sold off in large quantities earlier this year, when spot Bitcoin ETFs launched, the spigot was essentially turned off. Only $29 million worth of cryptocurrencies were sold by the company, bringing the total for the year to $17.8 billion. The fund still holds nearly $20 billion in bitcoin.
“His releases were very weak and they have been declining steadily over the last few weeks,” he told The Defiant. Butterfill said this suggests there is stabilization for Grayscale, although it could also be in anticipation of the mini-fund they are launching, which has much lower fees.
BlackRock is now the largest Bitcoin ETF by assets, surpassing Grayscale. According to a Dune Dashboardthe world’s largest asset manager now holds more than 301,000 BTC, or $21 billion, compared to Grayscale’s 285,000 bitcoins or $19.8 billion.
Spot Bitcoin ETFs are mainly concentrated in the top 3 asset managers. BlackRock and Grayscale are followed by Fidelity, which owns almost 20% of all Bitcoin ETFs (or $12 billion) held in these instruments. Fourth place goes to 21Shares with $3.4 billion (5.6% market share).