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Steady Interest in Bitcoin Keeps Money Flowing Into Crypto Funds

Posted by Gerald Roberts on November 16, 2021 - 3:06am
Author:
Helene Braun.
 

Investment products focused on the largest cryptocurrency gained $98 million, up from $95 million the week before.





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Digital asset investment products attracted $151 million last week, cooling from prior weeks but still at an elevated level, according to CoinShares’ report Monday. Of this amount, bitcoin-focused funds continue to dominate.

The total flows into cryptocurrency funds declined from the fourth straight week, slipping from $174 million last week, according to the report. The amount is still well off the $1.5 billion of inflows notched a few weeks ago when new exchange-traded funds backed by bitcoin futures contracts debuted in the U.S.

Bitcoin’s long-awaited update, Taproot, went live early Sunday but has so far not caused any dramatic market movements.

Investments into ethereum-focused funds totaled $17 million, with a total AUM exceeding $21 billion for the first time.

Meanwhile, solana-focused funds gained $9.8 million, the second-strongest altcoin last week after Cardano’s ADA.

FTX founder and CEO Sam Bankman-Fried said last week the Solana blockchain is better than Ethereum because it “is one of the few currently existing public blockchains that have a really plausible roadmap to scale millions of transactions per second at you know, fractions of a penny per transaction, which is a scale that you need for this.”

Alternative digital assets appeared to show waning investor interest. “Although flows have been positive recently, we have witnessed subdued volumes,” CoinShares said in the report.

Trading volumes in the crypto investment products averaged $750 million daily in the second half of this year versus $960 million in the first half of 2021, according to the report.

“The inflows are likely being due to increasing positive investor sentiment for ‘world computer’ coins,” the report said. Polkadot (DOT)-focused funds brought in $5.2 million while Ripple’s XRP attracted $3.1 million.
 

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets, and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.


 

Simon Keighley Inflows seem to be increasing into the crypto space due to positive investor sentiment, Gerald - thanks for the update.
November 16, 2021 at 9:15am
Charles Phillips Informative article. Thanks for sharing this news, Gerald.
November 16, 2021 at 4:11am
Gerald Roberts Digital Investments have slowed some over the last few weeks but are still somewhat steady. The new long-awaited Taproot upgrade for Bitcoin went into effect as of this past Saturday. But with some updating yet to be completed.
November 16, 2021 at 3:20am