Bitcoin-backed investment products have seen inflows from ether and altcoins such as solano, cardano and XRP for the third week in a row, according to CoinShares' weekly report, published Monday.
The report said investors invested a net $68.7 million in bitcoin products in the week to October 1, the highest amount since April 19. Ether-backed assets brought in $20.2 million, up from $28.9 million in the previous week. Meanwhile, according to Coinbase, bitcoin and ether rose in value by almost 18 per cent during the period.
The report says bitcoin confidence is growing among investors thanks to recent "concessionary statements" by the US Securities and Exchange Commission and the Federal Reserve. Fed chairman Jerome Powell said in late September that he had no intention of banning cryptocurrency after China began suppressing digital assets.
"People were very concerned this summer that the US was going to ban it, but I think it's clear now that the US is not banning bitcoin," said James Butterfill, investment strategist at CoinShares.
Meanwhile, the SEC has pushed back the deadline for approval of the first bitcoin-backed exchange-traded fund to 21 November . While this means a delay in the process, it has also given investors hope as the regulator has yet to say no, he said.
"They have gone ahead again and a lot of people now believe it is because they really want to make a decision, and a positive one at that," Butterfill said.
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Bitcoin is the largest cryptocurrency with a market value of around $936 billion, followed by the Etherium ether token with a market value of around $400 billion. In the last week, investors have expressed a clear preference for bitcoin over other tokens.
Last week, altcoins XRP, litecoin and bitcoin cash had no inflows or outflows, while dot and binance coins had outflows of $800,000 each. Assets backed by solana solana totalled $700,000, but that was a far cry from the record $50 million in inflows in mid-September, while cardano ada recorded inflows of $1.1 million.