Many see this as a sign of Ethereum’s coming dominance, but , as with any investment, there are risks. If you’re considering buying Ether, you should look at the coin’s investment risks before you buy. The most obvious risk is that the price will drop in the future. Like any cryptocurrency, Ether’s value is tied to public opinion, so it may be influenced strongly by media coverage and public perception. For example, the price of Ether soared in 2017 after a U.S. banking regulator granted it legitimacy by announcing that Ethereum was not a security. However, its price also fell sharply after rumors, later disproven, that China was about to ban cryptocurrency trading. Another risk is that Ether’s technology may not work
It’s not exactly news that there’s a lot of interest in Ethereum these days. The cryptocurrency has seen its market cap skyrocket over the last six months, turning many of its initial backers into life-changing sums of money. But it’s still newsworthy when a cryptocurrency passes the $100 billion dollar market cap mark, as Ethereum did in the first week of June. And so, when data from a major exchange revealed a huge uptick in Ethereum trading over the last quarter, it might have been expected that an interview with its CEO would have been the number one most-read article on the website that day. Instead, the number one most-read story on etherdelta on June 6th, 2017 was a blog post titled “Institutional investors
The crazy rise of Ethereum has been a popular topic in the press this year, but the story has mostly been about its skyrocketing price. But a new report from San Francisco-based investment firm Coinbase suggests that Ethereum is gaining traction at the institutional level as well. Coinbase’s “Month in Ethereum” report found that institutions invested more in Ethereum than Bitcoin in June 2017, based on analysis of transaction activity from the firm’s GDAX digital currency exchange. Institutional investors bought about $225 million worth of Ethereum-based assets, compared to about $160 million for Bitcoin.. Read more about ethereum as a store of value and let us know what you think.News ‘ Ethereum ‘ US ‘ Altcoins For the first time in history, institutional money flows to Ethereum (ETH) have surpassed money flows to Bitcoin (BTC). Ana Grabundzija – 21. May 2021 at 5:00 UTC – 1 min read Bitcoin (BTC) saw its biggest ever outflow last week, London-based digital asset manager CoinShares said in a report earlier this week.
Big bets for Ethereum
CoinShares, the second-largest manager of digital assets in Europe, said in its report that bitcoin investment products saw as much as $98 million in outflows : The outflows were exclusively bitcoin investment products, which accounted for $98 million, or 0.2% of total assets under management. While it’s a small amount, it’s the biggest release we’ve seen, with the second-largest at $19 million in May 2019. Before cryptocurrency prices collapsed last week, BTC investment products saw significant outflows. Meanwhile, the second largest cryptocurrency, Ethereum (ETH), has seen a significant influx of institutional investment. Compared to BTC inflows of $3.1 billion, ETH trading volume in digital investment products was $4.1 billion. Only BTC investment products saw outflows, while ETH and other altcoins saw significant inflows last week. Inflows into altcoin investment products totaled $48 million, indicating that investors are diversifying their BTC funds into altcoin investment products, CoinShares said.
Additions to other assets
Following ETH with $27 million in inflows last week was Cardano (ADA) with $6 million and Polkadot (DOT) with $3.3 million. After hitting an all-time high of nearly $65,000 in mid-April, the price of BTC plunged 35% as investors diversified their crypto-currency holdings with new developments on networks like ETH. Although crypto asset investment products saw a large outflow of $50 million, the first since October last year and the largest since May 2019, these figures are unlikely to affect general attitudes towards digital assets. Historical data suggests that this type of outflow has not been a turning point in the shift in sentiment towards digital assets, CoinShares concluded.
Gaining an advantage in the crypto asset market
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Who buys and sells cryptocurrency? The media tends to focus on retail investors, but the most recent figures show that institutional investors are starting to make up a larger part of the market. According to the latest State of Blockchain Report by CoinDesk, institutions bought more Ethereum than Bitcoin last month. This is a significant shift from last year, during which Bitcoin trading volume consistently dwarfed that of Ethereum.. Read more about institutional investing in cryptocurrency and let us know what you think.
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