Crypto investment funds saw a significant increase last week, with net inflows reaching $326 million. This surge was primarily driven by optimism surrounding the potential approval of the first spot bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC), according to CoinShares.
Despite being the largest influx since July 2022, it only ranks 21st in CoinShares' three-year record, indicating investor caution. Bitcoin funds, inclusive of short-bitcoin funds that profit from price drops, constituted 90% of all inflows, with $15 million specifically allocated to the latter.
In addition to Bitcoin, Solana [SOL] funds also continued their positive trend with $24 million in net inflows. On the other hand, Ether [ETH] funds faced a downturn, registering $6 million in net outflows last week, which increased the total year-to-date exits to $125 million.
CME Group (NASDAQ:CME) is closing in on its goal to surpass Binance in the Bitcoin Futures sector due to heightened institutional interest in Bitcoin. The Digital Asset Fund Flows report disclosed that during the week ending October 27, institutions invested a substantial $326 million into digital assets, with Bitcoin accounting for over 90% ($296.3 million). Solana attracted the second-largest inflows ($23.9 million), overtaking Ethereum which experienced outflows of $6 million.
The surge in investment is largely fueled by optimism surrounding the potential Bitcoin ETF approval. In terms of Open Interest (OI), CME Group trails Binance by just $300 million. Binance's OI stands at 111,420 BTC ($3.86 billion), whereas CME holds 103,230 BTC ($3.57 billion). This shift towards CME underscores institutional preference for safer options amid the anticipated bull market and Binance's unresolved SEC issues.
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