Inflows to bitcoin ETFs slow after record-breaking surge driven by first futures ETFs, Coinshares says
- Inflows into
bitcoinETFs were $53 million last week, slowing from a record haul in the previous week, said CoinShares.
- A record $1.2 billion was pushed into bitcoin-futures ETFs with the launch of such vehicles from ProShares and Valkyrie.
Institutional investors pushed more than $50 million into bitcoin exchange-traded funds last week, a slowdown from the more than $1 billion that was poured into such vehicles upon their arrival into the marketplace.
The ProShares Bitcoin Strategy ETF followed by the Valkyrie's Bitcoin Strategy ETF that launched toward the end of October marked total inflows of $1.24 billion, but that record-breaking haul "was not repeated" last week with only $53 million going into bitcoin ETFs, said digital asset management firm CoinShares in an update published Monday.
CoinShares said other European and Canadian-based bitcoin exchange-traded products logged inflows last week. Since the first two US-based bitcoin-futures ETFs were introduced, trading in VanEck's Bitcoin Strategy ETF has started.
The bitcoin-futures ETFs notch a notable development for the cryptocurrency market whose valuation this year has swelled to more than $2.5 trillion. The bitcoin-futures ETFs invest in contracts used to speculate on future prices for bitcoin and don't require buyers to hold an account at a cryptocurrency exchange or to have a crypto wallet.
While there was a slowdown in the weekly inflows into those products, bitcoin products raked in the majority of inflows into cryptocurrency vehicles last week, at $269 million. Those investments drove
At the same time, inflows into digital asset products were $288 million last week. The amount led total inflows so far this year to a record $8.7 billion, which is 30% higher than the total for 2020, said CoinShares.
Bitcoin during Tuesday's session rose more than 4% to trade at $63,485. It logged a fresh record high above $67,000 two weeks ago.
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