Cryptocurrencies see eight consecutive weeks of inflows - CoinShares data reveals
According to CoinShares on Tuesday, cryptocurrency products and funds attracted $226.2 million in investments last week, marking their eighth consecutive week of inflows.
Over an eight-week period, total crypto product inflows surpassed $638 million, with a year-to-date total of $6.3 billion.
According to data in the week ended Oct. 8, Bitcoin, as expected, led the pack, grabbing $225 million, for a fourth straight week of inflows.
James Butterfill, CoinShares' investment strategist, stated in the report that "we believe the improvement in bitcoin sentiment is due to positive remarks from SEC chair Gary Gensler, which may lead to the establishment of a bitcoin ETF (exchange traded fund) in America."
At a Financial Times conference last week, Securities and Exchange Commission Chairman Gensler reiterated his support for bitcoin ETFs that would invest in futures contracts rather of the digital currency itself.
Bitcoin hit a five-month high of just under $58,000 on Monday, thanks to strong institutional demand as it gains in popularity among investors. The world's largest cryptocurrency in terms of market value was last down 3.6% on Tuesday, at $55,402.
Since a June low of $28,600, bitcoin has increased about 88% of its value.
In its latest research note, Blockchain data provider Glassnode stated bitcoin experienced a surge in network activity in the first week of October, suggesting new demand is beginning to appear in fourth quarter.
In addition, Glassnode said that the positive sentiment and favorable price action has begun to creep back into the derivatives markets amid rising open interest rates and rising swap financing rates.
Ethereum, on the other hand, experienced minor outflows totaling $14 million, as it continues to lose market share to bitcoin. In the last week alone, its market share has fallen by 1% to 24% of assets under management.
Other altcoins like as solana and cardano, for example, had inflows of $12.5 million and $3 million, respectively, according to data. While other digital tokens, such as polkadot, ripple, and litecoin, experienced outflows.
Assets under management at Grayscale and Coinshares, the two largest digital asset managers, rose to $48.4 billion and more than $5 billion, respectively, last week.