Huge Sum of Inflow in Bitcoin Funds Last Week-Coinsharesdata
With supportive statements from the regulators at the SEC, investors are more attracted to the cryptocurrency market than ever before. CoinShares, the digital fund manager, released the data about an inflow of $90.2 million in the sector of cryptocurrency. According to the data shared on October 1, Bitcoin succeeded in raising funds worth $69 million, making a total of US $90.2 million. Till now, the crypto market has witnessed an inflow of about US $6.1 billion in 2021.
Crypto investment strategists believe that the cryptocurrency market has been able to gain investor confidence due to the statements from the U.S. Securities and Exchange Commission (SEC) and the Federal Reserve. The United States Federal Reserve Chairman earlier stated that there is neither any intention nor a plan to ban Bitcoin and cryptocurrency in the United States. Since then the crypto market has been performing well. Bitcoin, which has the highest value per unit in the market, has done especially well.
There have been rumors that The Bitcoin Futures Exchange Traded Fund (ETF) might soon be rolled out for interested investors. This ETF will help investors in investing in futures contracts, rather than investing in the cryptocurrency itself.
The popular blockchain data provider Glassnode stated that this week, the Bitcoin market rallied very strongly, by breaking out of the overall range of $40,931 and peaking to $49,044 on the weekend. The month of September was not joyous for the crypto market, but October has surely brought in some good news.
Other cryptocurrencies have also been performing well. Ethereum, which is the second-largest cryptocurrency in market value after Bitcoin, was able to garner US $20 million last week. Bitcoin was able to capture more market, by reducing the market share of Ethereum from 28% to 25%. Crypto coins like Cardano and Solana witnessed smaller amounts of inflows of $1.1 million and $0.7 million respectively. Polkadot had to witness an outflow of US $0.8 million.
Trading volumes were low even with the huge inflow of funds in the crypto market. As per the CoinShares data, with last week’s total inflow of funds worth $90.2 million, the total investment in cryptos reached $411 million.
The US Federal Reserve’s statement about not banning cryptocurrency in the country and the estimated launch of the Bitcoin Futures ETF have been the major contributing factors for such good inflow in the crypto market. Bitcoin is performing the best out of all the cryptocurrencies, followed by Ethereum. September was a low month for the crypto market. It is expected that the market will now perform bullishly and be able to provide the desired returns to investors.