Institutional flows into Bitcoin (BTC) products increased sharply in October, indicating a renewed sense of optimism towards the major cryptocurrency.
According to CoinShares’ weekly report, for the week ending October 31, investments in crypto investment products amounted to $288 million, of which $269 million was in Bitcoin.
Institutional demand for BTC has risen steadily in recent months, amid expectations that the US Securities and Exchange Commission, or SEC, will approve its first bitcoin trading fund. These expectations were met last month when two Bitcoin-related products entered the market.
Officially launched on October 19, ProShares Bitcoin Trading Strategy Fund (ETF) generated $1 billion in assets under management in the first two days, becoming the fastest fund ever to reach this milestone. However, unlike the previous record week, US ETFs inflows of bitcoin reached just $53 million in the last period, according to CoinShares.
During October, Bitcoin funds as a whole brought in $2 billion in inflows, bringing the year-to-date total to nearly $6.4 billion. In contrast, Ether (ETH) funds have raised $1.05 billion since the beginning of the year. Taking all cryptocurrencies into account, the influx in 2021 reached $8.7 billion last week, up 30% from last year.
On the topic: Why now? It took the SEC eight years to license a Bitcoin ETF in the United States.
Bitcoin price reached a record high last month, surpassing $67,000, before correcting downward. At the time of writing, according to Cointelegraph Markets Pro, the leading cryptocurrency has a value of $61,000.