Popularity and Move Towards PoS Coins Intensify, Report
Coinshares has released a brief synopsis of the investment inflows and outflows in popular ETPs, mutual fund and OTC trusts, referencing all major digital assets.
While the crypto market experienced some volatility last week, ethereum’s (ETH) market share rose to an all-time high of 27%. This new record comes off the back of Ethereum announcing it will be moving ahead with two hard forks – London and Altair.
Proof-of-stake coins remain popular, with large inflows seen into cardano (ADA), polkadot (DOT), and XRP of $5.2 million, $3.8 million, and $4.5 million, respectively. These inflows echo the sentiments of cardano founder Charles Hoskinson, who believes the crypto industry has decoupled from bitcoin (BTC).
The growing popularity and move towards proof-of-stake coins has intensified, after Elon Musk raised concerns over bitcoin mining environmental impact, last month. Specifically, he is concerned about the increasing use of fossil fuel, especially coal. While the note does state the benefits of cryptocurrencies, Musk stated that it should not come at the cost of the environment.
There was good news for the industry, as investors added positions, with net inflows into digital assets of $74 million, last week. The previous weeks’ volatility had resulted in two weeks of $151 million in outflows. Furthermore, the outflows seen this week remain focused mainly on bitcoin products. While bitcoin investment product inflows remain positive for 2021 at $4.4 billion, they have lost $246 million, over the past three weeks.
The inflow and outflow of investment into digital assets ostensibly indicates investors sentiment and trust in the market. The trust shown to ethereum shows the clear move towards more environmentally friendly digital assets on the back of bitcoin’s environmental issues.
