Bitcoin and the broader crypto market are firmly in bullish territory, and institutional investors have increased their allocation accordingly. According to the most recent CoinShares report, cryptocurrency funds received nearly $1.5 billion in inflows last week as a result of the debut of the first Bitcoin futures exchange-traded funds (ETF) in the United States.
Bitcoin is gaining popularity among institutional investors.
CoinShares reported on Monday that the crypto market saw a staggering $1.47 billion in new money flow into cryptocurrency funds, the highest level on record. The previous weekly high was set in February of this year, when inflows totaled $640 million. The inflows last week pushed the year-to-date total to $8 billion.
According to the report, the dramatic increase in inflows over the last week is due to the US Securities and Exchange Commission’s approval of two Bitcoin ETFs. “This is a direct result of the SEC allowing a bitcoin ETF to invest in futures and the subsequent listing of two bitcoin investment products,” according to the European digital asset manager’s report.
To summarize, the SEC fueled a wave of euphoria in the crypto world last week by approving the first Bitcoin futures ETF, which sent the benchmark cryptocurrency’s price to a new record high near $67,000. Wall Street, in particular, welcomed ProShares Bitcoin Strategy ETF on October 19 and Valkyrie Investments’ Bitcoin futures ETF just a few days later. These occurrences have been heralded as watershed moments in cryptocurrency history.
According to CoinShares, ProShares alone brought $1.2 billion to the cryptocurrency market in the last week. With $111 million, the ETC Group came in second.
Overall, institutional managers poured money into Bitcoin-centric investment products, which accounted for 99 percent of total weekly inflows into crypto funds.
Investors are shifting away from Ether and toward Solana and Cardano.
As institutional money continues to pour into bitcoin, some altcoins are seeing investors unload their holdings. For the third week in a row, the world’s second-largest cryptocurrency, Ethereum, has seen institutional appetite dwindle.
According to CoinShares, ethereum-based fund outflows totaled $1.4 million last week. This is attributed to investors profiting as the underlying cryptocurrency’s price soared to all-time highs.
While money was flowing out of Ethereum, products tracking other altcoins saw inflows of $8.1 million, $5.3 million, and $1.8 million, respectively, with Solana (SOL), Cardano (ADA), and Binance Coin (BNB) reporting inflows of $8.1 million, $5.3 million, and $1.8 million.
The altcoin market received a total of $15 million in institutional inflows, which pales in comparison to Bitcoin’s institutional inflows.