Because of the approval of two futures-linked ETFs in the United States, October was a record-breaking month for BTC funds.
In October, institutional inflows into Bitcoin (BTC) products increased sharply, indicating renewed optimism about the flagship cryptocurrency.
According to CoinShares’ weekly flows report, crypto investment products saw inflows totalling $288 million for the week ending Oct. 31, with Bitcoin accounting for $269 million.
Institutional demand for BTC has gradually increased in recent months, owing to expectations that the United States Securities and Exchange Commission, or SEC, will approve the country’s first Bitcoin exchange-traded fund. Last month, two Bitcoin-related products hit the market, fulfilling those expectations.
The ProShares Bitcoin Strategy exchange-traded fund (ETF), which officially launched on October 19, generated $1 billion in assets under management in its first two days, making it the fastest fund to achieve that milestone. In contrast to the previous record-breaking week, however, inflows into US-based Bitcoin ETFs totalled only $53 million in the most recent period, according to CoinShares.
Nice look at just how ridic $BITO‘s first two days of volume were. Here it is vs the next most successful ETF launches of all time. It did double any of them, and is in good co w/ second day growth (see $QQQ, $GLD) via @tpsarofagis pic.twitter.com/WLzQt7yD3t
— Eric Balchunas (@EricBalchunas) October 21, 2021
Bitcoin funds as a whole received $2 billion in inflows in October, bringing the year-to-date total to nearly $6.4 billion. In comparison, Ether (ETH) funds have received $1.05 billion since the beginning of the year. When all crypto assets are considered, 2021 inflows reached $8.7 billion last week, which is 30% higher than all of last year.
Last month, the Bitcoin price reached an all-time high of more than $67,000 before correcting lower. According to data, the leading cryptocurrency was worth $61,000 at the time of writing.