Investors poured money into bitcoin for a third week in a row at the expense of altcoins
According to the report by digital asset manager CoinShares, Bitcoin-backed investment products saw an additional week of inflows last Monday, at the expense ether and altcoins such as solana and cardano.
The report stated that investors poured $68.7million into bitcoin products during the week ending October 1. This is the highest amount since April 19. The previous week saw $28.9 millions inflows to Ether-backed assets, while $20.2 million was for Ether-backed assets. According to Coinbase data, bitcoin and Ethereum rose by nearly 18% during that period.
According to the report, bitcoin investors have more confidence because of the Federal Reserve and US Securities Exchange Commission’s recent ‘accommodative statement’. In September, Fed Chair Jerome Powell stated that he did not intend to ban crypto after China’s crackdown.
“People were worried this summer that the US would ban bitcoin. But I think it’s now clear that the US isn’t banning it,” James Butterfill, CoinShares investment strategist said.
In the meantime, the SEC extended the deadline for approval of the first bitcoin-backed exchange traded fund to November 21. Although it is a delay, investors can still be hopeful, as the regulator has not yet said “no” at this point.
Butterfill stated that they have pushed the can down the road once again, and that many people believe now that this is because they want to make a decision, and it will be a positive one.
Bitcoin is the most popular cryptocurrency with a market capitalization of approximately $936 billion. ethereum’s token, ether, has a value of about $400 billion. Investors have shown a clear preference to bitcoin over other tokens in the last week.
Altcoins XRP and litecoin saw no outflows or inflows over the past week. Dot and Binance Coin saw $800,000. The assets backed by solana’s sol saw $700,000. However, this was far from the record 50 millionin outflows in mid September, when cardano’s Ada saw inflows of $1.1million.
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