Bitcoin dominates weekly investments into cryptocurrencies with 99% share in eighth week of inflows

By: |
October 13, 2021 5:35 PM

Last week's investments brought the eight-week run of inflows to $638 million while year-to-date inflows stood at $6.3 billion.

cryptocurrency investment, Bitcoin, cryptocurrency, Elon Musk, Bitcoin, cryptocurrency, legal tender, bitcoin, cryptocurrency, FEMA, cryptocurrency, bitcoin, dogecoin, ethereum, buy bitcoin, wazir-x, binance, zebpay, bitcoin, income tax on crypto earningsThe second-largest crypto Ethereum saw minor outflows worth $14 million last week.

Crypto investors are continuing to bet on cryptocurrencies as crypto assets and funds saw the eighth straight week of inflows with $226.2 million coming in last week, according to the data shared in the digital asset management firm CoinShares’ weekly report on digital asset fund flows. Last week’s investments brought the eight-week run of inflows to $638 million while year-to-date inflows stood at $6.3 billion. The total assets under management (AuM) of global digital assets were $66.7 billion, up from $34.5 billion as of January 8, 2021. In fact, the total AuM is now just 5 per cent short of the all-time high at $67 billion due to recent positive price action.

Among all digital assets, Bitcoin led the inflow tally with a 99.4 per cent share of total investment. Inflows into Bitcoin stood at $225 million while its AuM stood at $45.7 billion followed by $12.5 million inflows into Solana that had $119 million AuM. “We believe the turnaround in sentiment towards Bitcoin is due to constructive statements from SEC chair Gary Gensler, potentially allowing a Bitcoin ETF in the US. Our recent survey data also highlights greater institutional participation in the asset class,” said James Butterfill, Investment Strategist, CoinShares.

Also read: Bitcoin rally: Crypto king tops $57,000 price mark first time in five months

On the other hand, the second-largest crypto Ethereum saw minor outflows worth $14 million. The digital asset continued to lose market share to Bitcoin, from 1 per cent decline to 24 per cent of AuM in the past week alone,” Butterfill added. Ethereum had AuM worth $16 billion. Apart from Solana, Cardano saw inflows of $3 million while Bitcoin Cash recorded $0.3 milllion inflows, “suggesting the focus hasn’t entirely switched to Bitcoin.” Other altcoins including Polkadot, Ripple and Litecoin couldn’t perform much with outflows of $2.1 million, $0.6 million, and $0.2 million respectively.

The US Securities and Exchange Commission (SEC) Chair Gensler had told Financial Times a few weeks back that “cryptocurrencies and decentralised finance (DeFi) platforms pose a challenge for regulators because they exist without traditional brokers, to whom laws can be easily applied. Instead, they offer opportunities for investors to deal more directly with each other.”

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