Bitcoin investment products saw inflows of US$69 million last week amid improving investor sentiment, according to digital assets fund manager CoinShares.
- “We believe this decisive turnaround in sentiment is due to growing confidence in the asset class amongst investors and more accommodative statements from the U.S. Securities [and] Exchange Commission and the Federal Reserve,” wrote CoinShares investment strategist James Butterfill. U.S. Federal Reserve Chairman Jerome Powell, speaking before the House Committee on Financial Services on Sept. 30, had confirmed the U.S. had no plans to ban Bitcoin and cryptocurrencies.
- “The Bitcoin market has rallied strongly this week, breaking out of the recent consolidation range low of $40,931, and peaking at $49,044 over the weekend,” according to blockchain data provider Glassnode on Oct. 4. “After a fairly brutal September, this rally has brought with it renewed optimism for the last quarter of 2021.”
- Ethereum — the second-largest cryptocurrency by market value after Bitcoin — also saw inflows last week of US$20 million. Ethereum’s market share compared to Bitcoin has dropped from its peak of 28% to 25%, CoinShares noted. The performance of other altcoins were mixed — Cardano and Solana saw minor inflows of US$1.1 million and US$0.7 million respectively and Polkadot saw outflows of US$0.8 million.
- Cryptocurrency investment products saw inflows of US$90 million last week, with total inflows over the past seven weeks amounting to US$411 million, CoinShares said. However, trading volumes remained low at US$2.4 billion last week, compared to US$8.4 billion in May.