Crypto Funds Doubles Weekly Entries To $ 226 Million As Boil Returns To Bitcoin Market

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Crypto-focused funds received more than double the amount of new money last week compared to the week before, as bullish sentiment returned to the bitcoin market.

Digital asset investing products recorded a total of $ 226 million in entries in the week that ended last Friday, up from $ 90 million the week before.

The jump was largely due to bitcoin-focused funds, where inflows rose from $ 156 million to $ 225 million, the highest in five months, according to a report released Monday by digital asset manager CoinShares.

The surge in interest in bitcoin funds came as the highest price of cryptocurrencies rose last week to a five-month high. The crypto was recently trading at around $ 57,300.

The last time bitcoin registered such high inflows was in May, when its price was around $ 58,500, as it was down from the all-time high of nearly $ 65,000. earlier in the year. The price of Bitcoin then fell to $ 29,000 in July, but recently staged another rally, up 20% in October alone.

The Gensler effect

Ethereum-focused funds, which had gained in recent months as bitcoin funds were mostly flat or declining, posted minor outflows last week, totaling $ 14 million. Funds focused on alternative blockchains Litecoin, Ripple and Polkadot also saw exits last week.

The authors of the CoinShares report attributed the surge in bitcoin flows to recent statements by U.S. Securities and Exchange Commission Chairman Gary Gensler, who hinted that the regulator may be willing to approve a traded fund. exchange linked to bitcoin futures contracts. Gensler also notably said last week that it had no plans to ban cryptocurrencies.

We believe the shift in sentiment towards bitcoin is due to constructive statements by SEC Chairman Gary Gensler, potentially allowing a bitcoin ETF in the United States, the report says.

Some other altcoin-focused funds continued to post gains. Solanas SOL token-focused investment vehicles saw inflows of $ 12.5 million, while funds linked to the Cardanos ADA token received $ 3 million.

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