Ethereum brought in $195 million in weekly inflows according to CoinShares data. The report found that investors are “unusually focused” on the asset.
A new CoinShares report released on Feb. 8 shows that recent investment inflow has been heavily favoring Ethereum. The market’s second-largest cryptocurrency drew in $195 million in investment in the first week of February, trouncing other assets.
Total inflows into the market stand at $2.6 billion, already more than a third of 2020’s total of $6.7 billion. 2021 has started extremely bullish, and if current trends continue, this could be the cryptocurrency market’s biggest year yet.
The biggest inflows come from Grayscale Investments, which is the most well known of institutional crypto providers. The firm accounted for nearly $200 million in weekly inflows, which is about 80% of all major providers.
At $42 million, Bitcoin’s weekly inflow is also at its lowest since the first week of January. Polkadot followed Ethereum and Bitcoin, though far behind, with an inflow of $4.4 million.
The heavy inflow into Ethereum may be a result of the burgeoning DeFi market. However, CoinShares’ researchers note that investors are preferring to hold over taking profits. Ethereum is the backbone of the DeFi market, which shows just as much, if not more, promise than in 2020.
Institutional investments have contributed a large part toward the market’s growth in the past six months. Several companies and hedge funds, including BlackRock, have become open to Bitcoin as a legitimate investment vehicle. This has, in turn, pushed the market forward, creating a domino effect that is steadily drawing high-profile individuals and companies.
Among these examples is Tesla, which purchased a colossal $1.5 billion in Bitcoin, according to an SEC filing. CEO Elon Musk, who is no stranger to crypto headlines, has made his support for digital assets clear. Bitcoin even briefly crossed the $1 trillion market cap as it hit record prices beyond $47,000.
If more such news comes in, Bitcoin’s recent double-digit surge will likely continue. Bitcoin is the market’s fundamental asset, the profits from which historically flow into altcoins.