Green october Institutional inflows into bitcoin (BTC) increased significantly in October 2021. Bitcoin is attracting more and more institutional investors looking for an asset that can serve as a safe haven against inflation.

Bitcoin and institutions: October 2021, the month of historical records

Bitcoin ended October 2021 at a historic monthly closing level above $ 61,000, after reaching an all-time high of $ 67,000. October 2021 saw a large influx of institutional investors into the BTC markets. CoinShares Weekly Report indicated as well as bitcoin investment products have totaled $ 269 million in admissions, out of the $ 288 million for crypto products in general, during the last week of October 2021.

The month of October 2021 was not only that of historical records, but also that of a historic event for bitcoin. The first exchange-traded fund following bitcoin futures contracts, the ProShares Bitcoin Strategy, was launched on October 19, 2021 on the New York Stock Exchange. ETF generated $ 1 billion in assets under management in its first two days, the first fund to have recorded such a performance. The ProShares Bitcoin Strategy also beat the record in terms of organic volume recorded on the first day. This volume has reached $ 1 billion on launch day.

BTC funds in general have bought $ 2 billion entry in October 2021, and around $ 6.4 billion year-to-date, compared to $ 1.05 billion for ETH funds.

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Bitcoin increasingly rare: a hedging asset for institutions

This adoption of bitcoin by institutions has a good chance of increasing, with investors increasingly realizing that inflation presented as “transitory” by central banks could ultimately last longer, and even central bankers are struggling to contain this inflation. More and more institutional investors could therefore embrace this discourse of a deflationary bitcoin playing the role of a hedging asset.

And the supply of available bitcoin continues to become scarce in the markets. In October 2021, funds bought more bitcoin than miners produced.

Bitcoin and cryptocurrencies in general are gradually integrating the funds of players who initially worked in traditional finance, sometimes attracting a pension fund in Australia, or even a French insurance company that wants to allow the addition of bitcoin in life insurance. .

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