Bitcoin ETF Inflows Slow Down As Altcoins Interest Rebound
03 November 2021 - 10:00AM
NEWSBTC
Bitcoin ETF inflows had hit over a billion dollars on their first
week of trading. The success of the ETFs saw the digital asset
rally towards a new all-time high. Interest in the market grew
tremendously among retail and institutional investors alike,
leading to a week of record inflows, the highest the market has
ever seen in a seven-day period. This demand has been a culmination
of growing interest from institutional investors over the past
couple of months. Related Reading | MicroStrategy Bent On
Increasing Bitcoin Bet After 9,000 BTC Purchase, Says CEO However,
the past week has seen a slow down in the interest coming from the
big players. Inflows into Bitcoin ETFs were considerably lower last
week compared to the previous weeks. Data shows that the market saw
inflows of less than half that was previously recorded. Over a
billion had poured into bitcoin ETFs the first week following the
approvals. But inflows for last week only came out to a total of
$53 million. Institutional Inflows Into Bitcoin Fall A recent
CoinShares report shows that inflows into the market had nosedived
for the past week. In October alone, institutional inflows into the
top cryptocurrency had hit $2 billion. This figure was mainly
driven by the ETF approvals in the third week of the month which
saw more than $1.4 billion flow into BTC in a single week. The last
week of October did not fare too well in this regard. BTC price
begins another rally | Source: BTCUSD on TradingView.com Inflows
into crypto for the past week ending on October 31st came out to
$288 million. This number added to the previous volume for the past
week brought total inflows to a record year-to-date value of $8.7
billion. However, this number was quite small compared to inflows
for the previous week. Bitcoin alone saw the majority of the
inflows into the market with $269 million flowing into BTC and BTC
products for the week. Less than half of this value flowed into
ETFs as interest in the funds has fallen in the past week. Ethereum
And Altcoins Stage A Return Ethereum has been experiencing a dry
spell in market inflows for the past three weeks. Outflows
dominated in the digital asset as focus turned on bitcoin after the
approval of ETFs for trading. Despite record market inflows in the
third week of October, Ethereum suffered outflows for the week.
However, the close of the month came with some uplifting news for
the digital asset as it recorded positive inflows for the first
time in a month. Inflows into ETH last week came out to a total of
$17 million. With a 32% growth in market share for the asset, total
year-to-date inflows now sit at $1 billion for ETH. The crypto led
the charge for the altcoin recovery seen in the market for the past
week. Related Reading | Goldman Sachs Analysts Shoot For
Ethereum At $8,000 With Expected 80% Rally In addition to Ethereum,
other altcoins also saw positive inflows. Solana continued to
record inflows with a total of $15 million from institutional
investors being put into the digital asset. Polkadot and Cardano
followed behind with $6.2 million and $5 million flowing into both
altcoins respectively. On the multi-asset investment products
fronts, outflows continued to dominate the market. A record $23
million in outflows was recorded on multi-asset investment products
in what will mark a third consecutive week of outflows. It is
believed that investors are moving their funds into single-asset
exposures and are being more cautious with altcoin investments.
Featured image from Startup Info, chart from TradingView.com
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