Bitcoin and the broader cryptocurrency market are bullish again; institutional investors have increased their allocation accordingly.
Institutional inflows into cryptocurrency products rose last week, as investment managers increased their exposure to Bitcoin (BTC) and leading altcoins, according to the latest CoinShares report.
Total assets held by institutional managers reached $72.3 billion for the week ending Oct. 17, the highest level on record. By comparison, institutional crypto holdings were worth $57 billion in March and reached $71.6 billion in May.
For the latest week, digital asset investment products saw inflows totaling $80 million. Bitcoin products attracted the largest investments at $70 million, marking the fifth consecutive week of inflows. Institutional investors also increased their holdings of Polkadot (DOT) and Cardano (ADA) products by $3.6 million and $2.7 million, respectively. Meanwhile, Ether (ETH) products saw minor outflows totaling $1 million.
In terms of provider, ETC Group and 21Shares saw the largest weekly inflows at $63.6 million and $19.3 million, respectively. Inflows into Grayscale products, which represent the largest crypto-focused funds, flat-lined.
Bitcoin is coming off its highest weekly close on record, as the spot price came within striking distance of $63,000 on Friday. The largest cryptocurrency by market capitalization is rising in anticipation of two futures-based ETFs hitting the market in the near future. The ProShares Bitcoin Strategy ETF is scheduled to begin trading on the New York Stock Exchange on Tuesday.
A Bitcoin ETF listing in the United States could attract new investors to the cryptocurrency market by giving them a familiar and highly regulated vehicle in which to park their assets. ProShares CEO Michael Sapir said Monday that investors have been “eagerly awaiting the launch” of a Bitcoin-focused ETF.
Pent-up demand among traditional investors was reflected in the recently launched Canadian Bitcoin ETFs, which attracted billions of inflows shortly after launching. The Purpose Bitcoin ETF, which launched in February, now has $1.7 billion in assets under management, according to Bybt data.
News Source from CoinTelegraph.com