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This week, institutional investors poured $225 million into Bitcoin products, while Ether products saw a $13.6 million outflow.
Despite prices reaching a five-month high, institutional investors continue to pile into Bitcoin (BTC).
According to CoinShares’ Tuesday “Digital Asset Fund Flows Weekly” report, more than $226 million in capital flowed to institutional Bitcoin products this past week. Bitcoin products dominated inflows for the third consecutive week, posting a week-over-week increase of 227%.
The large inflows coincided with BTC’s price rising 12.5 percent for the week, with BTC trading around $54,000 on Friday.
CoinShares attributes the recent positive shift in sentiment towards Bitcoin to recent statements from United States Securities and Exchange Commission Chairman Gary Gensler implying that the long-awaited approval of the United States’ first Bitcoin exchange-traded fund (ETF) is just around the corner.
Because of the increased interest in Bitcoin, the combined assets under management (AUM) of institutional crypto products reached $66.7 billion last week, according to CoinShares, which is only 5% less than the sector’s record AUM from May.
For the week, products tracking altcoins had mixed results, with Solana (SOL) and Cardano (ADA) products generating inflows of $12.5 million and $3 million, respectively.
Funds with exposure to Ether (ETH), Polkadot’s DOT, and XRP, on the other hand, saw outflows of $13.6 million, $2.1 million, and $600,000, respectively.
Crypto investment products have now posted inflows for eight weeks in a row.
Many observers attribute BTC’s recent bullish momentum to expectations that the SEC will soon approve a Bitcoin ETF based on futures contracts.
While the SEC has previously rejected all applications for physically backed Bitcoin ETFs, the SEC is currently considering four applications for exchange-traded funds based on the Chicago Mercantile Exchange’s (CME) regulated futures contracts.
With CME’s futures markets offering a product that is already insured and supervised by US regulators, analysts such as Bloomberg’s senior ETF analyst Eric Balchunas believe that Bitcoin futures ETFs are “likely on schedule” to receive regulatory approval this month.