As institutional investors sought more support from regulators, cryptocurrency funds and investment products saw inflows for the seventh consecutive week, according to CoinShares data on Monday.
According to CoinShares data, the sector saw inflows of $90.2 million last week. The largest source of these flows was bitcoin, which grabbed $69 million. Inflows to crypto have reached $390 million in the last seven weeks. Inflows for 2021 totaled $6.1 Billion.
Bitcoin saw its third consecutive week of inflows.
“We believe that this pivotal turnaround in sentiment can be attributed to growing confidence amongst investors as well as more accommodative statements by the U.S. Securities Exchange Commission (USSEC) and the Federal Reserve,” wrote James Butterfill, an investment strategist at CoinShares.
Last week, Gary Gensler, Chairman of the SEC, reiterated his support for bitcoin exchange-traded funds that would invest instead in digital currency.
Jerome Powell, Fed Chair, stated before Congress that the Fed did not intend to ban cryptocurrency.
Bitcoin hit a 4-week high of just below $50,000 Monday. It was then up 2.3% to $49,333 at the last check.
In its most recent research note, Glassnode, a blockchain data provider, noted that bitcoin rose out of its narrow trading range on Monday. However, 10.3% of the circulating supply has returned to unrealized profits.
Inflows to Ethereum funds and products continued for another week, totaling $20 million. This is despite bitcoin losing market share in recent weeks. This year, inflows to Ethereum token ether have reached $1 billion.
Last time Ether fell 0.4% to $3,403.
Despite consecutive weekly inflows across cryptocurrency products, volumes were still low at $2.4 Billion last week, CoinShares data revealed. This is compared to $8.4 Billion in May 2021.
Grayscale and Coinshares managed $41.1 billion and $4.6 trillion respectively last week.