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Bitcoin ETF launch sees digital asset investment products receive record inflows

Published 26/10/2021, 09:24
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By Samuel Indyk

Investing.com – The launch of the first Bitcoin Futures ETF last week meant that digital asset investment products saw the largest weekly inflows on record, according to data from CoinShares.

For the week ended 22nd October, inflows totalled $1.47 billion which saw total assets under management reach a new record of $79.2 billion, before closing the week down slightly at $76.7 billion, the data showed.

The previous weekly record was seen in February this year when inflows totalled $640 million.

The surge in inflows to digital asset investment products is a direct result of the launch of the first Bitcoin Futures ETFs, CoinShares said. The ProShares Bitcoin Strategy ETF (NYSE:BITO) began trading on Tuesday last week.

As such, Bitcoin was responsible for 99% of the inflows, totalling $1.45 billion.

The launch of the ProShares ETF coincided with Bitcoin hitting a new record high, just below $67,000 on Wednesday. The ETF reached $1 billion of assets under management by its second day, marking it the fastest ETF to reach that milestone. Previously, the SPDR® Gold Shares ETF (NYSE:GLD) held that honour, reaching $1 billion in assets under management by its third day of trading.

Altcoins

Ethereum saw outflows of $1.4 million during the week, marking the third consecutive week of outflows. CoinShares believes that may be due to minor profit taking as the price of Ethereum approaches its all-time high from May this year.

Other major altcoins saw inflows. Solana saw inflows of $8.1 million, Cardano saw inflows of $5.3 million and Binance Coin saw inflows of $1.8 million, the data showed.

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