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Cryptocurrencies post inflows for 7 straight weeks, led by bitcoin


© Reuters. In this illustration, which was taken June 29, 2021, the PC motherboard is depicted with representations of cryptocurrencies Bitcoin and Ethereum. REUTERS/Dado Ruvic/Illustration

By Gertrude Chavez-Dreyfuss

NEW YORK, (Reuters) – Cryptocurrency funds and investment products saw inflows for the seventh consecutive week as institutional investors sought more support from regulators. Data from CoinShares on Monday showed that data from digital asset manager CoinShares indicated this.

According to CoinShares data from Oct. 1, the sector received $90.2million in inflows last week. This was led by bitcoin. It snagged $69million. The crypto inflows have reached 390 million over the last seven week. The total inflows to crypto for 2021 was $6.1 billion.

The third week in a row of flows was recorded.

James Butterfill from CoinShares, an investment strategist, wrote that the decisive turn in sentiment can be attributed to increasing confidence amongst investors as well as more accommodative statements made by the U.S. Securities Exchange Commission (USSEC) and the Federal Reserve.

At a Financial Times conference last week, Gary Gensler (SEC Chairman) reiterated support for bitcoin exchange-traded funds. Futures contracts would replace the digital currency and he did so with his full backing.

Jerome Powell (Fed Chair) stated that the Fed was not planning to prohibit cryptocurrency a day later.

Bitcoin reached a 4-week peak of under $50,000 on Monday. The last time Bitcoin was at its highest level, it rose 2.3% to $49333.

Glassnode’s latest research note from Monday on Monday stated that while bitcoin rallied above its trading range, 10.3% of the total circulating supply went to profit.

Products and funds posted $20 million inflows for another week despite losing market share to Bitcoin in the last few weeks. This year, inflows to Ethereum token ether have reached $1 billion.

Last time Ether fell 0.4% to $3,403.

However, there were still volumes at $2.4 BILLION last week, CoinShares data revealed. This is compared with $8.4 BILLION in May 2021.

Grayscale and Coinshares managed $41.1 billion and $4.6 trillion respectively last week.

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