Investments in cryptocurrency funds have more than doubled over the past week amid the prevalence of bullish sentiment among market participants.
According to CoinShares in its latest report, crypto funds raised $ 226 million in a week versus $ 90 million a week earlier. The positive dynamics was primarily due to the interest in bitcoin – investments in funds based on the first cryptocurrency amounted to $ 225 million.
This is the highest value for this type of instrument in five months. The previous time, comparable inflows to bitcoin funds were observed in May with a cryptocurrency price of about $ 58,500. Then, bitcoin rolled back from record highs of about $ 65,000, until it reached $ 29,000 in July. Today the BTC price has surpassed $ 57,000 again.
Ethereum-based funds, which outperformed bitcoin funds in the previous period, recorded an outflow of $ 14 million over the past week. Several other altcoins, including Litecoin, XRP and Polkadot, also showed negative dynamics. At the same time, funds based on Solana and Cardano continued to attract investments – $ 12.5 million and $ 3 million, respectively.
CoinShares analysts attribute the surge in investor interest in bitcoin to recent statements by the chairman of the US Securities and Exchange Commission, Gary Gensler, about the possibility of approving an ETF based on bitcoin futures.
“We believe that the change in perception of bitcoin was due to constructive statements by SEC Chairman Gary Gensler, pointing to the possibility of approving a bitcoin ETF in the United States,” the report said. “Our recent survey also showed higher levels of institutional participation in this asset class.”
Earlier, Bloomberg analyst Eric Balchunas predicted that Bitcoin ETF will be approved by the end of this month with a probability of 75%.
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