Cryptocurrencies show entries for 7 consecutive weeks, led by bitcoin

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – Investment products and cryptocurrency funds registered entries for a seventh straight week, as institutional investors warmed to more favorable statements from regulators, data from the manager showed on Monday of CoinShares digital assets.

Entries to the sector totaled $ 90.2 million last week, led by bitcoin which took down $ 69 million, according to CoinShares data as of October 1. In the past seven weeks, crypto entries have reached $ 390 million. For 2021, the collection amounted to 6.1 billion dollars.

Bitcoin recorded its third consecutive week of influx.

“We believe this decisive shift in sentiment is due to growing investor confidence in the asset class and more dovish statements from the US Securities Exchange Commission and the Federal Reserve,” wrote James Butterfill, investment strategist at CoinShares.

SEC Chairman Gary Gensler last week at a Financial Times conference reiterated his support for Bitcoin exchange-traded funds that would invest in futures instead of the digital currency itself.

A day later, Fed Chairman Jerome Powell, speaking to Congress, said the Fed has no plans to ban cryptocurrencies.

Bitcoin hit a four-week high on Monday of just under $ 50,000 and last rose 2.3% to $ 49,333.

Blockchain data provider Glassnode, in its latest research note on Monday, pointed out that, as bitcoin moved out of its narrow trading range last week, around 10.3% of the circulating supply returned to a profit. unrealized.

Ethereum products and funds, meanwhile, saw another week of influx totaling $ 20 million, despite market share conceded to bitcoin in recent weeks. Entries into ether, the token of the Ethereum blockchain, have so far this year amounted to $ 1 billion.

Ether last lost 0.4% to $ 3,403.

Yet despite consecutive weekly inflows of crypto commodities, volumes were low at $ 2.4 billion last week, according to CoinShares data, from $ 8.4 billion in May 2021.

Assets under management at Grayscale and Coinshares, the two largest digital asset managers, soared last week to $ 41.1 billion and $ 4.6 billion, respectively.

(Reporting by Gertrude Chavez-Dreyfuss; editing by Richard Pullin)


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