The company’s Bitcoin and Ethereum stock traded products have seen $429 million invested last week. It added that this has been the second-highest crypto investment product inflow on record.
The latest report from CoinShares stated that total assets under management now total a record $15 billion. It highlighted Ethereum, which stood out over the past week, with inflows of $87 million representing 20% of its total inflows.
More notably, the report compared the investment flows from gold to Bitcoin stating;
“Gold has suffered with outflows from investment products of a record US$9.2bn over the last four weeks while Bitcoin saw inflows totalling US$1.4bn.”
Gold vs Bitcoin Performance
Gold prices have retreated 10% from their high of $2070/oz on August 6 to current prices around $1,860/oz today according to Goldprice.org. Over the same period, Bitcoin prices have increased by 56% from $11,700 in early August to $18,300 currently.
Looking at the yearly picture, the price of gold is up just 22% since the beginning of 2020 but Bitcoin has made an impressive 150% so far this year. Ethereum has performed even better, surging 320% since the beginning of January from $130 to current prices around $550.
Commenting on the big investment figures for ETH, CoinShares stated;
“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,”
However, the research also acknowledged that the weak US dollar is highlighting fears of excessive monetary policy. This, combined with worries over management of the COVID crisis, is a period when gold and safe have assets should perform strongly.
Major institutional funds such as Grayscale have been hoovering up Bitcoin and Ethereum at unprecedented rates to fuel their products and provide exposure to the asset for professional investors.
Crypto Market Outlook
Crypto asset markets are currently accelerating a correction that began on December 1 when total capitalization hit an almost three-year high of $590 billion according to Coingecko.
Over the past week or so markets have pulled back 7.5% to current levels around $545 billion as Bitcoin and its brethren cool off after their impressive rallies.
As pointed out by trader and analyst ‘dave the wave’, however, there is no need to panic;
Why is BTC down? Because it just doubled in price in a couple of months. This isn’t rocket science people. 🤪
— dave the wave🌊 (@davthewave) December 9, 2020
Retail traders may well be taking profits off the table at the moment but institutional interest in crypto assets is still at record levels.