Bitcoin-led investments into cryptocurrencies hit record $1.5 billion on the back of first Bitcoin ETF

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Updated: October 26, 2021 5:20 PM

Altcoins including Solana, Cardano, and Binance saw inflows totalling $8.1 million, $5.3 million, and $1.8 million respectively. Litecoin, Polkadot, Ripple, Bitcoin Cash also recorded inflows while Ethereum saw outflows for a third consecutive week totalling $1.4 million.

bitcoin price crasHes investor in dilemma what to do know here what expert say for bitcoin cryptocurrency investmentThe previous weekly record of investment inflows was in February this year with inflows worth $640 million. (Image: Reuters)

Investments into crypto funds and assets continue to roll with even more impressive strides as investors put a record $1.47 billion into digital asset investment products last week. Moreover, the total crypto assets under management (AUM) also reached a new record of $79.2 billion during the week before closing the weekend at $76.7 billion, according to the data shared in the digital asset management firm CoinShares’ weekly report on digital asset fund flows. The surge in investments and AUM, as per the report, has been on the back of all-time high growth witnessed in Bitcoin prices and the US Securities & Exchange Commission (SEC) allowing a Bitcoin Exchange Traded Fund (ETF) and the following consequent listing of two Bitcoin investment products with inflows worth $1.24 billion.

“The crypto community was longing for a regulatory acceptance to crypto-tied financial services. With U.S. SEC approving bitcoin ETFs, this is huge and a step in the right direction. This will elevate the scope of cryptocurrencies in mainstream financial services that were previously confined to buying/selling only. There’s a rally of cryptocurrencies following up. Wait & watch,” Vikram R Singh, Founder, Antier Solutions told Financial Express Online.

The previous weekly record of investment inflows was in February this year with inflows worth $640 million. In fact, the inflows this year so far stood at $8 billion, far surpassing the record of $6.7 billion in 2020. Among total inflows last week, Bitcoin dominated with a 99 per cent share in it worth $1.45 billion. “Inflows into Bitcoin products were also seen in other regions totalling $138 million, although there was evidence of profit-taking with some older investment products seeing outflows,” CoinShares noted.

Also read: Blockchain firm Blockedge to offer blockchain-as-a-service platform for automotive, supply chain markets

Other altcoins including Solana, Cardano, and Binance also saw inflows totalling $8.1 million, $5.3 million, and $1.8 million respectively. Litecoin, Polkadot, Ripple, Bitcoin Cash also recorded inflows while Ethereum saw outflows for a third consecutive week totalling $1.4 million. This, CoinShares “believe is minor profit taking as the price closes-in on all-time-highs.”

Bitcoin had rallied to an all-time high price of $67,276 on Wednesday, a day after the first US Bitcoin futures-based exchange-traded fund (ETF) — ETF ProShares Bitcoin Strategy was launched on the New York Stock Exchange. The move was likely to widen investments into digital assets even as crypto investors were looking for approval from the US regulators for ETFs. Bitcoin was trading at $62,811, at the time of filing this report, as per data from CoinMarketCap.com.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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