Institutional investors continue to flock to Bitcoin despite the price soaring to a 5-month high. crypto
According to CoinShares ’12. October’ The digital assets fund flows weekly reported, more than $ 226 million in capital flowed into the institute’s Bitcoin (BTC) products in the past week. Bitcoin products dominated the flow for the third week in a row, up 227% from the previous week.
The massive inflow coincided with a 12.5% increase in BTC price for the week, with BTC trading at around $ 54,000 in October.
CoinShares attributed the positive change in sentiment towards Bitcoin to recent remarks by U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler suggesting the long-awaited approval of Bitcoin, America’s first Bitcoin Exchange Traded Fund (ETF) may be approaching.
The heightened activity surrounding Bitcoin has seen the combined assets under management of institutional crypto products jump to $ 66.7 billion last week – with CoinShares estimating the grand total just 5% below the industry-record AUM from May.
Altcoin tracking products saw mixed performance this week, with the Solana (SOL) and Cardano (ADA) products generating inflows of $ 12.5 million and $ 3 million, respectively. However, funds offering exposure to Ether (ETH), Polkadot (DOT), and Ripple (XRP) saw inflows of $ 13.6 million, $ 2.1 million and $ 600,000, respectively.
Cryptocurrency investment products have now seen inflows for eight consecutive weeks.
Related: Billionaire Bill Miller supports Bitcoin, but doubts Altcoins
Many viewers assume that BTC’s recent upward momentum is due to the expectation that the SEC will soon approve a Bitcoin-based futures ETF.
While the SEC previously denied every application it received for physically-backed Bitcoin ETFs, the SEC is currently reviewing four applications for exchange-traded funds based on futures contracts regulated by the Chicago Mercantile Exchange (CME).
With the CME futures markets offering a product that is already insured and regulated by US regulators, experts like Bloomberg’s senior ETF analyst Eric Balchunas believe that the Bitcoin futures ETF “probably received the go-ahead” this month .