Bitcoin and ethereum stock traded products have seen $429 million invested last week according to CoinShares, operator of the XBT Provider ETFs.
“Cryptoassets shook off the wobble in prices two weeks ago with the second largest investment product inflows on record totalling US$429m bringing total assets under management to a record US$15bn,” they say.
Ethereum in particular stands out for attracting significant investment at $87 million, accounting for 20% of total inflows.
“This suggests that investors are favouring Ethereum, likely due to greater clarity from the Ethereum management team on the much awaited Eth2 upgrades that make the network much more efficient and sustainable,” CoinShares says.
We can see ethereum saw a far greater share last week while Grayscale continues to dominate, but less than previously.
All is up, while gold on the other hand has seen a record $9.2 billion in outflows over the last four weeks.
That has led to suggestions much of it is going to bitcoin due to an apparent correlation between bitcoin’s price and the movement of funds out of gold ETFs.
This may have been spurred by a number of prominent pronouncements that bitcoin is the new digital gold, including by Citibank.
In addition bitcoin has performed far better since March amidst mass money printing, while gold has been more reserved.
Thus the crypto space has attracted more attention from institutional investors that see it as a real hedge and a portfolio diversifier.