Institutional Crypto Products Score AUM Assets As Investors Accumulate Bitcoin
Institutional investors continue to invest in Bitcoin despite the price surge to a five-month high.
According to CoinShares on October 12 Digital Asset Fund streaming weekly ReportOver $226 million of capital has poured into institutional Bitcoin (BTC) products over the past week. Bitcoin products dominated the inflows of The third week in a row, with a weekly increase of 227%.
The big flows coincided with a 12.5% rise in the price of BTC for the week, with BTC reaching around $54,000 on Oct.
CoinShares attributes the positive shift in sentiment toward Bitcoin to recent statements from US Securities and Exchange Commission (SEC) Chairman Gary Gensler indicating the long-awaited approval from the United States. The first fund to be traded on the Bitcoin exchange (ETF) may be around the corner.
Increased activity surrounding bitcoin has seen aggregated assets under management (AUM) for institutional crypto products rise to $66.7 billion last week — with CoinShares estimating the total to be just 5% of the benchmark sector’s AUM as of May.
Altcoin tracking products posted mixed performance during the week, with Solana (SOL) and Cardano (ADA) products generating $12.5 million and $3 million inflows, respectively. However, funds offering to deal with ETH (ETH), Polkadot (DOT) and Ripple (XRP) suffered outflows of $13.6 million, $2.1 million, and $600,000 each.
Crypto investment products have now recorded inflows for eight consecutive weeks.
Many onlookers attribute the recent BTC bullish momentum Expectations are that the Securities and Exchange Commission will soon approve a futures-based Bitcoin ETF.
Although the SEC has previously dropped every application it has received for financially backed ETFs, the SEC is currently studying four Exchange-traded fund applications based on the Chicago Mercantile Exchange (CME) regulated futures contract.
With the CME futures markets offering a product already insured and overseen by US regulators, critics such as Bloomberg’s chief ETF analyst Eric Balchunas believe that Bitcoin futures ETFs “likely to get on schedule” Regulatory green light This month.