Global crypto ETFs attract record $5.95 billion as bitcoin scales new highs
A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su
Exchange-traded funds (ETFs) tracking crypto assets drew record inflows of $5.95 billion globally last week, as strong demand for digital assets helped propel bitcoin to an all-time high.
Digital asset investment products garnered the record capital in the week ended October 4, according to data from Coinshares.
Bitcoin, the world's largest cryptocurrency, surpassed its August peak to hit a record high on October 5, extending its gains to reach $126,223 for the first time on Monday.
The United States led with $5 billion inflows in crypto ETFs, followed by Switzerland at $563 million and Germany at $312 million, both setting new records, Coinshares said. Bitcoin attracted $3.55 billion, ether $1.48 billion, while solana and XRP drew $706.5 million and $219.4 million, respectively.
Bitcoin's ascent comes alongside a record rally in traditional safe haven gold, as a weakening U.S. dollar amid trade uncertainty and economic concerns is pushing investors to diversify their portfolios.
"This level of investment highlights the growing recognition of digital assets as an alternative in times of uncertainty," said James Butterfill, head of research at CoinShares, in the weekly report.
Deutsche Bank expects bitcoin to feature on most central banks' balance sheets, alongside gold, by 2030.
The cryptocurrency rally this year has been driven by more supportive policies under U.S. President Donald Trump, demand from institutional investors, and bitcoin's deepening integration with global financial markets.
