Cryptocurrencies submit inflows for 7 straight weeks, led by bitcoin -CoinShares information

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NEW YORK, Oct 4 (Reuters) – Cryptocurrency funding merchandise and funds recorded inflows for a seventh straight week, as institutional traders warmed to extra supportive statements from regulators, information from digital asset supervisor CoinShares confirmed on Monday.

Inflows to the sector have been $90.2 million final week, led by bitcoin which snagged $69 million, in accordance with CoinShares information as of Oct. 1. Over the previous seven weeks, crypto inflows reached $390 million. For 2021, inflows totaled $6.1 billion.

Bitcoin recorded its third straight week of inflows.

“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 Exchange Commission and the Federal Reserve,” wrote James Butterfill, funding strategist, at CoinShares.

SEC Chairman Gary Gensler final week at a Financial Times convention reiterated his help for bitcoin change traded funds that might spend money on futures contracts as an alternative of the digital forex itself.

A day later, Fed Chair Jerome Powell, in remarks earlier than Congress, mentioned the Fed had no intention of banning cryptocurrencies.

Bitcoin on Monday hit a four-week excessive of slightly below $50,000 and was final up 2.3% at $49,333.

Blockchain information supplier Glassnode, in its newest analysis word on Monday, identified that as bitcoin rallied out of its slender buying and selling vary final week, roughly 10.3% of the circulating provide returned to an unrealized revenue.

Ethereum merchandise and funds, in the meantime, posted one other week of inflows totalling $20 million, regardless of conceding market share to bitcoin in current weeks. Inflows to ether, the token for the Ethereum blockchain, to this point this 12 months quantity to $1 billion.

Ether was final down 0.4% at $3,403 .

Still, regardless of consecutive weekly inflows throughout crypto merchandise, volumes have been low at $2.4 billion final week, CoinShares information confirmed, in comparison with $8.4 billion in May 2021.

Assets beneath administration at Grayscale and Coinshares, the 2 largest digital asset managers, climbed final week to $41.1 billion and $4.6 billion, respectively.

Reporting by Gertrude Chavez-Dreyfuss; modifying by Richard Pullin

Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration