Bitcoin and the broader cryptocurrency market are once again bullish, and institutional investors have increased their holdings accordingly.
According to the latest CoinShares report, institutional inflows into cryptocurrency products increased last week as investment managers increased their exposure to Bitcoin (BTC) and leading altcoins.
For the week ending Sunday, Oct. 17, total assets held by institutional managers reached $72.3 billion, the highest level on record. In comparison, institutional cryptocurrency holdings were valued at $57 billion in March and $71.6 billion in May.
In the most recent week, digital asset investment products received $80 million in inflows. Bitcoin-related products attracted the most investment, totaling $70 million, marking the fifth week of inflows. Institutional investors increased their stakes in Polkadot (DOT) and Cardano (ADA) by $3.6 million and $2.7 million, respectively. Meanwhile, minor outflows of Ether (ETH) products totaled $1 million.
ETC Group and 21Shares had the highest weekly inflows, with $63.6 million and $19.3 million, respectively. Grayscale products, which represent the largest crypto-focused funds, saw a drop in inflows.
Bitcoin is coming off its highest weekly close on record, with the spot price approaching $63,000 on Friday. The largest cryptocurrency by market capitalization is rising in anticipation of the release of two futures-based exchange-traded funds (ETFs) in the near future. On Tuesday, the ProShares Bitcoin Strategy ETF will begin trading on the New York Stock Exchange.
A Bitcoin ETF listing in the United States could entice new investors into the cryptocurrency market by providing them with a familiar and highly regulated vehicle to store their assets. According to ProShares CEO Michael Sapir, investors have been “excitedly awaiting the launch” of a Bitcoin-focused ETF.
Pent-up demand among traditional investors was reflected in the recently launched Canadian Bitcoin ETFs, which drew billions of dollars in inflows shortly after their debut. According to Bybt data, the Purpose Bitcoin ETF, which debuted in February, now manages $1.7 billion in assets.