Institutional inflows into Bitcoin (BTC) products picked up sharply in October, underscoring renewed bullish sentiment surrounding the flagship cryptocurrency.
Crypto investment products saw inflows totaling $288 million for the week ending Oct. 31, with Bitcoin accounting for $269 million, according to CoinShares’ weekly flows report.
Institutional demand for BTC has been picking up gradually over the past few months amid expectations that the United States Securities and Exchange Commission, or SEC, would approve its first Bitcoin exchange-traded fund. Those expectations came to fruition last month with two Bitcoin-linked products hitting the market.
The ProShares Bitcoin Strategy exchange-traded fund (ETF), which launched officially on Oct. 19, generated $1 billion in assets under management in its first two days, becoming the fastest fund to ever reach that milestone. However, unlike the previous record-breaking week, inflows into U.S.-based Bitcoin ETFs totaled only $53 million for the most recent period, according to CoinShares.
For the month of October, Bitcoin funds as a whole generated $2 billion in inflows, bringing the year-to-date total to nearly $6.4 billion. By comparison, Ether (ETH) funds have received $1.05 billion since the year began. When accounting for all crypto assets, 2021 inflows reached $8.7 billion last week, which is 30% higher than all of last year.
For the week ending Oct. 31, crypto investment products raked in a whopping $288 million. Bitcoin accounts for the majority of that figure, with a total of $269 million, according to CoinShares’ weekly flows report.
The renewed bullish sentiment around the flagship cryptocurrency has caused a rise in the institutional demand for BTC over the past few months, amid expectations that the United States Securities and Exchange Commission (SEC) would approve its first Bitcoin exchange-traded fund.
Those expectations were fueled further when two Bitcoin-linked products hit the market last month. The ProShares Bitcoin Strategy ETF became the fastest fund to generate $1 billion in assets under management within the first two days of its launch. According to CoinShares, inflows into U.S.-based Bitcoin ETFs totaled only $53 million for the past week, unlike the previous record-breaking week.