Investors are piling up Bitcoin ETPs due to positive SEC sentiment

BTCE recorded $ 165 million in inflows last week

Investors invested $ 225 million in Bitcoin exchange-traded (ETP) products last week as the Securities and Exchange Commission (SEC) got closer to approving the first Bitcoin ETF.

Bitcoin made almost all of its net inflows of $ 226 million for the week ending October 8.

Crypto issuer ETC Group made up the bulk of the inflows, raising $ 165 million.

CoinShares Physical saw the second highest inflows at $ 54.7 million, followed by 21Shares ($ 10.8 million), Purpose ($ 6.3 million) and CoinSharesXBT ($ 6.2 million).

Bitcoin’s price has risen 35% in the past two weeks, breaking the $ 50,000 mark after the U.S. regulator broke a basket of $ 30 in the U.S.’s first Bitcoin stock ETF, the Volt Bitcoin Revolution ETF Shares forming, green light has been linked to the crypto industry.

The approval came after SEC chairman Gary Gensler said that crypto assets can be viewed as “a store of value”.

Bitcoin Future ETFs could hit the market as early as October 18 if the SEC decides not to delay the process as more than a dozen companies are currently waiting to see their applications approved.

James Butterfill, Investment Strategist at CoinShares, said, “We believe the turnaround in Bitcoin is due to constructive statements from Gensler that may enable a Bitcoin ETF in the US.”

He added that capital flows were helped by increased institutional participation in the asset class.

Research by the ETP provider found that the average portfolio weights in digital assets represent 1.1% of assets under management, although they vary significantly across institutional investor types.

Of those surveyed, 21% said regulation was cited as the main reason not to invest in crypto.

Elsewhere, Ethereum saw $ 14 million outflows last week as it continues to lose market share to Bitcoin. Cardano and Solana continued to see inflows of $ 12.5 million and $ 3 million, respectively.

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