Cryptocurrency products and funds recorded inflows totaling $ 1.5 billion last week, which is a new record high amid a rally in cryptocurrencies and the launch of the first Bitcoin ETF in the US according to a recent CoinShares report. The previous record was set in February at $ 640 million. Inflows so far this year hit $8 billion, far exceeding the record set for the whole of 2020 of $6.7 billion.
Cryptocurrency products and funds had record inflows last week to the tune of $1.5 billion. Source: CoinShares
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Create account Try a demo Download mobile app Download mobile appTotal assets under management reached a new record of US$79.2bn but finished week-end at US$76.7bn. According to the data, the majority of the inflow for the sixth straight week was sent to Bitcoin for $ 1.45 billion.
Ethereum recorded outflows for a third consecutive week totaling $1.4 million, possibly due to minor profit-taking as the price approaches record highs. Other altcoins saw inflows with the most notable being Solana, Cardano and Binance which saw inflows totalling US$8.1m, US$5.3m and US$1.8m respectively.
The ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF debuted last week, and many market participants believe this may attract more funds from large institutional investors.
Meanwhile, leveraged funds on the Chicago Mercantile Exchange (CME) increased their short positions on bitcoin to record high in the week ended Oct. 19, possibly to profit from the widening gap between futures and spot markets prices. The annualized premium in the front-month bitcoin futures contracts jumped from 1% to 20% after the launch of the ProShares’ Bitcoin Strategy ETF and currently stands at 13%. Funds may have raised short positions in the futures market and simultaneously bought Bitcoin in the spot market, taking profits from the so-called carry trade.
Recent Commodity Futures Trading Commission’s (CFTC) Commitments of Traders report showed leveraged funds held a net short position of 31k contracts in the week ended Oct. 19, marking an increase of 6k from the previous week. Source: Skew by Coinbase
Bitcoin price witnessed a downward correction over the weekend, however bulls managed to halt declines at $60,000 support which coincides with 23.6% Fibonacci retracement of the last upward wave. If current sentiment prevails, then another upward impulse towards fresh all-time highs at $67,000 may be launched. On the other hand, if sellers manage to regain control, then support at $56,860 may be at risk. Source: xStation5
