Cryptocurrency after eight consecutive weeks of influx: report

During the eight-week period, total crypto product inflows reached $638 million, with a total of $6.3 billion in the year to date.

According to data for the week ending October 8, bitcoin, as expected, led the way for a fourth straight week of inflows to drop by $225 million.

James Butterfil, investment strategist at CoinShares, wrote in the report, “We believe the change in bitcoin sentiment is due to constructive statements by SEC Chairman Gary Gensler, potentially allowing bitcoin ETFs (exchange-traded funds) in the US.” gives.”

At a Financial Times conference a few weeks ago, US Securities and Exchange Commission Chairman Gensler reiterated his support for bitcoin ETFs that would invest in futures contracts rather than the digital currency.

Bitcoin fell below a five-month high of $58,000 on Monday, fueled by persistent institutional demand as it gains legitimacy among investors. On Tuesday, the world’s largest cryptocurrency by market cap was down 3.6% at $55,402.

Since the June low of $28,600, bitcoin has gained about 88% of its value.

In its latest research note, blockchain data provider Glassnode said that bitcoin experienced an increase in network activity in the first week of October, indicating that new demand is starting to kick in in the fourth quarter.

In addition, Glassnode said that positive sentiment and constructive price action has also started to return amid open interest in derivatives markets and rising swap funding rates.

Meanwhile, Ethereum saw a modest outflow totaling $14 million, as the data shows, as it continues to lose market share to Bitcoin. Its market share under management has dropped from 1% to 24% in the past week alone.

Data shows that other altcoins such as Solana and Cardano posted inflows of $12.5 million and $3 million respectively. While other digital tokens, such as Polkadot, Ripple and Litecoin, posted outflows.

Assets under management at the two largest digital asset managers, Grayscale and CoinShares, rose to over $48.4 billion and $5 billion, respectively, last week.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.