- Investors poured a record $US1.5 ($AU2) billion into the crypto market last week as the first-ever bitcoin ETF kicked off trading.
- This is the largest-ever weekly inflow, far surpassing the prior record of $US640 ($AU854) million set in February, CoinShares said.
- Ether, meanwhile, saw outflows for a third consecutive week to the tune of $US1.4 ($AU2) million due to profit-taking.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Investors poured a record $US1.5 ($AU2) billion into the cryptocurrency market last week as the first-ever bitcoin ETF kicked off trading with the underlying asset itself hitting an all-time high.
The 10th straight week of inflows was also the largest ever, far surpassing the prior weekly record of $US640 ($AU854) million set in February, according to a report by digital asset manager CoinShares on Monday.
Year-to-date, total crypto inflows now total $US8 ($AU11) billion, beating the 2020 record of $US6.7 ($AU9) billion, according to data for the week ending October 22. Total assets under management also hit a new record of $US79.2 ($AU106) billion, although it ended the week at $US76.7 ($AU102) billion
“The record inflows were a direct result of the US Securities and Exchange Commission allowing a bitcoin ETF investing in futures and the consequent listing of two bitcoin investment products,” the report said.
Bitcoin saw 99% of last week’s inflows, totaling $US1.45 ($AU2) billion. There was, however, some evidence of profit-taking with some older investment products seeing outflows, the report showed.
Bitcoin soared above $US66,000 ($AU88,119) at its high point last week, representing a 50% gain in the space of a month while he benchmark S&P 500 has climbed roughly 4%.
“The cryptocurrency industry has waited for what feels like a very long time,” Adam James, senior analyst at OKEx Insights, the research arm of crypto exchange OKEx. “Though ProShare’s offering is technically a futures-backed ETF, it still represents a milestone in bitcoin’s history.”
Ether, meanwhile, saw outflows for a third consecutive week to the tune of $US1.4 ($AU2) million. CoinShares attributed this to a “minor profit-taking as the price closes-in on all-time-highs.”