No 2. cryptocurrency ethereum soars to record high as bitcoin rally continues
Ether, the world’s second-largest digital currency, hit a record high on Thursday, driven up by the continuing rally in bitcoin.
The price of ether hit $1,918.52 during morning trade in Asia but has since pared some gains, according to CoinDesk data. It was trading at $1,883.58 at 12.14 p.m. Singapore time, up around 8%.
Ether has seen a year-to-date price rise of 160% compared to bitcoin’s 78% surge in the same period.
But it is the rally in bitcoin — which surpassed $52,000 for the first time on Wednesday — that’s helping to push up ether as well.
“The ether slingshot is in motion, with the number 2 coin looking cheap and posed to surge relative to bitcoin’s $52k level,” Jehan Chu, co-founder of cryptocurrency focused venture capital and trading firm Kenetic Capital, told CNBC.
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Ethereum Attracts Record $216 Million Weekly Crypto Inflows
Ethereum, the world’s second-largest cryptocurrency, attracted a record $216 million in ETH-related investment products last week, beating the previous week’s record of $195 million. The total cryptocurrency assets under management stood at around $47 billion last week.
According to the latest weekly crypto inflows report published by CoinShares, last week saw a total of $602 million investment in digital assets, the third-largest inflows on record. Ethereum remained the standout performer as the world’s second-largest cryptocurrency, accounting for nearly 36% of the total weekly inflows.
Bitcoin, the most valuable cryptocurrency in the world saw weekly inflows of $367 million, a significant jump from the previous figure as institutional demand for BTC increased after Tesla announced a $1.5 billion Bitcoin investment.
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“Ethereum was the standout performer with a record $216 million of investment product inflows, beating the previous week’s record of $195 million. Ethereum inflows represented 36% of the digital asset inflows last week, far greater than the share of assets under management at 16%. This highlights how investors are, at least on a relative basis, favoring Ethereum. We have seen minor inflows (2% of total) into multi-digital assets funds and Polkadot in recent weeks, while Bitcoin Cash has seen little interest from investors,” the report states.
Institutional Accumulation
Bitcoin crossed $50,000 today after the institutional demand for BTC increased substantially in the last few weeks. The cryptocurrency market crossed the total market capitalization of $1.5 trillion yesterday. Grayscale, the world’s largest crypto asset manager now has $38 billion worth of digital assets under management. Bitcoin remained the top holding asset of Grayscale as the company has more than 653,000 BTC under management with a total value of $31.8 billion. Grayscale accelerated its accumulation of Ethereum in the last few weeks. The asset manager purchased 194,522 ETH in the last 4 weeks. Grayscale now has more than 3.13 million Ethereum under management with a total value of more than $5.5 billion. As of writing, ETH is trading above $1,800 with a total market cap of $207 billion.