New money flowing into cryptocurrency space rose to a record-high of $1.47 billion last week, according to a report by CoinShares.
The huge capital inflow was after the U.S Securities and Exchange Commission approved Bitcoin ETF investing in futures and the broad-based rally that followed the announcement. Year-to-date, investors have dumped a total of $8 billion into crypto funds.
Bitcoin, the world’s most dominant cryptocurrency, rose to an all-time high of $66,974 per coin last week.
Most of the inflows go into Bitcoin-focused funds, Bitcoin focused funds accounted for 99 percent of all the $1.47 billion inflows recorded last, up from the $70 million Bitcoin exposed funds attracted in the previous week.
CoinShares attributed Bitcoin’s new attraction to the two bitcoin futures listed after SEC approval.
“This is a direct result of the U.S. Securities and Exchange Commission (SEC) allowing a bitcoin ETF investing in futures and the consequent listing of two bitcoin investment products,” the report noted.
SEC had approved the first Bitcoin futures ETF, ProShares Bitcoin Strategy ETF, on October 15, 2021. It was the approval that drove Bitcoin back to $60,000 a coin before it set a new all-time record.
However, while Ether (ETH), the native cryptocurrency of the Ethereum blockchain and the world’s second-largest cryptocurrency by market value, also reached an all-time high at $4,361 a coin last week, funds exposed to Ether saw outflows for a third consecutive week. Ether outflows stood at $1.4 million last, stated the report.
“This is minor profit-taking as the price closes in on all-time highs.”
Altcoins like Solana (SOL) also saw inflows at $8.1 million, Cardano (ADA) and Binance coin (BNB) attracted inflows estimated at $5.3 million and $1.8 million, respectively.