Digital asset management and crypto investment tools provider – CoinShares – has recently published its weekly report giving a glimpse into the net fund flows into the crypto market for the last week. For the last week ending June 3, digital asset investment products recorded total net inflows at $100million.
While Bitcoin (BTC) registered net inflows, Ethereum (ETH) continues to suffer. Ethereum funds registered net outflows for the ninth consecutive week in a row. As CoinShares explains:
“Ethereum continues to suffer, with another week of outflows totalling US$32m. Ethereum has endured 9 straight weeks of outflows implying enduring negative investor sentiment. However, since the outflows began in December 2021, they only represent just under 7% of total AuM”.
This could be a bit worrying sign for Ethereum showing that investors are losing confidence in the Bitcoin competitor. In its previous week’s report, CoinShares mentioned that investors preferred other altcoins over Ethereum.
Ethereum (ET) Market Dominance Shrinking
Ethereum (ETH) has been part of the brutal market sell-off this year. The major thing is that Ethereum’s market dominance has been shrinking continuously and is currently under 18%. On the other hand, Bitcoin market dominance continues to rise.
This goes to show that in times of distress and bear market conditions, investors usually consider Bitcoin as a safe haven over Ethereum. The CoinShares report shows that Bitcoin saw net inflows for the last week. The report notes:
Bitcoin saw inflows totalling US$126m last week, bringing total inflows year-to-date to just past the half a billion mark at US$506m.
Stakes are high for Ethereum this year as everyone is keenly awaiting ‘The Merge’ upgrade on its platforms. This week ahead, developers will be testing ‘The Merge’ upgrade on the Ethereum Ropsten testnet. If successful, they shall apply the same on the mainnet by August 2022. Positive developments in this regard can further revive investors’ interest in Ether (ETH).
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.