The leap in price was largely driven by the surge in funds to buy bitcoin, where bitcoin inflows rose from $156 million to $225 million, a record high in five months.
Weekly charts show the flow of investor funds into crypto funds. This shows that there has been a large influx in the past week.
Funds focused on investing in crypto More than twice the number of new investments in the past week. Due to the bullish sentiment returning to the Bitcoin market
Digital asset investment products totaled $226 million as of Friday last week, up from $90 million the week before.
The increase was largely driven by bitcoin-focused funds, with inflows rising $156 to $225 million. which is the highest inflow in five months As reported Monday from CoinShares fund managers.
The rebound in interest in Bitcoin funds comes as the price of the largest cryptocurrency, Bitcoin, hit a five-month high last week. The latest trading price has moved around $57,300.
The last time we saw the highest amount of money flow into Bitcoin was in May. The price of Bitcoin hovered around $58,500, down from a record high of nearly $65,000 at the start of this year. But prices have risen more than 20% in October just one month.
The Gensler effect
Ethereum-focused funds, which have beaten Bitcoin in recent months, have started to fall flat. And there was a small amount of money outflow last week. which has a total value of 14 million US dollars. Alternative blockchain-focused funds, such as Litecoin, Ripple and Polkadot, have also seen money supply outflows last week.
The authors of the CoinShares report noted that the amount of money inflows into bitcoin has increased following a recent statement by US Securities and Exchange Commission Chairman Gary Gensler. This implied that regulators may be willing to approve exchange-traded funds linked to bitcoin futures. Gensler also said last week that he had no intention of banning the cryptocurrency.
“We believe the recovery in bitcoin sentiment is driven by a positive statement from SEC Chairman Gary Gensler, which may allow a bitcoin ETF in the United States,” the report states.
Other funds focused on altcoins continue to show positive returns. Solana’s coin-focused investment SOL saw an inflow of $12.5 million in money supply. Meanwhile, Cardano’s ADA Invested Fund saw $3 million worth of inflows.