Ethereum market share rises to 26%
After the huge increase from $ 2,725 to $ 3,230, Ethereum was faced with a price decline at the same time as Bitcoin: the second-placed cryptocurrency had to lose around 2.4% in terms of market capitalization in the last 24 hours. ETH is currently (time of this article) trading at $ 3,134 – still an increase of almost 21% based on the week.
A new report from crypto asset manager CoinShares suggests that the setback could only be temporary. Accordingly, the market share of Ethereum (ETH) in institutional investment products is growing – and very quickly.
CoinShares in the weekly report Vol. 41:
“Ethereum’s market share is growing rapidly again and now accounts for 26% of investment products, compared to just 11% at the beginning of 2021.”
For example, Ethereum 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. For Bitcoin Cash, the total is $ 1 million, while Polkadot, Litecoin and Cardano have inflows of less than $ 1 million over the same period.
Most of the outflows occurred in Bitcoin last week, comments CoinShares – although BTC has still seen higher inflows than Ethereum over the course of the year:
“Despite positive price movements, Bitcoin continued to take the brunt of the outflow, which last week totaled $ 33 million.”
More and more listed fund and investment products
The analysts also add: Recently, more and more funds/investment products have been listed.
“This year the record number of 37 was launched, compared to the previous high of 30 in 2018. Most of these were actively managed funds, although their market share of 2.5% is still very small compared to passive investment products.”
After Bitcoin, institutions are now apparently more and more interested in Ethereum. Come in addition: The voices are increasing, the so-called “Flippening” expect. What this means is that Ethereum overtakes Bitcoin in terms of market capitalization. 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.
The 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 that is true. I think ETH will overtake BTC after market cap by the end of ’22. “
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 https://t.co/e8hE68tOJF pic.twitter.com/uHE2LcdXo5
— 🧸🔫🐧Pentoshi 🐧 Wont DM You (@Pentosh1) August 1, 2021