Demand on Ethereum Spikes As More ETH ETPs Roll Out Ahead of July Hard Fork: CoinShares CSO
Talking to CNBC’s Squawk Box host Andrew Sorkin, the chief strategy officer of CoinShares, Meltem Demirors, shared hew view of why a large rotation of funds is happening now from Bitcoin into Ethereum.
Here’s how she explained Ethereum going ahead of Bitcoin.
Demand for Ethereum is growing
Meltem Demirors referred to the analysis of data made by CoinShares, which says that investor demand to Ether is growing compared to Bitcoin via numerous exchange-traded products.
At the moment, she said, there is a staggering $10 billion in total in Ethereum ETPs (over 8 billion ETH) globally under management. Those include ETP launched by CoinShares last week in Canada.
The latter contains over $1 billion worth of ETH under management.
Demirors also reminded that the supply scheme of Ether is about to change due to the hard fork event scheduled for July (EIP-1559), after which the amount of daily issued ETH will be cut down significantly.
Cash is moving from Bitcoin to Ethereum
The CoinShares CSO mentioned that cash keeps flowing into Ethereum at the weekend despite the fact that the banks are closed. This means, she explained, that investors are taking cash from other crypto assets into ETH.
She did not name Bitcoin here but the host Andrew Sorkin did at the start of the discussion, when he asked, how much of ETH cash inflows are rotations out of Bitcoin.
Demirors seems to have confirmed his assumption about funds flowing from BTC into the second biggest cryptocurrency.