Investment flows into cryptocurrency funds and products hit a record $1.31 billion final week following a couple of weeks of little outflows, as investors took advantage of this decline in bitcoin along with other digital asset prices, according to the newest statistics on Monday from asset manager CoinShares.
Total assets under management (AUM) from the industry dropped to $29.7 billion as of Jan. 22, by an all-time summit of $34.4 billion on January the 8th. At the conclusion of 2019, the total AUM was just $2 billion.
Grayscale, the world’s biggest digital money manager, posted resources under management of $24 billion last week, down from $28.2 billion on Jan. 8. CoinShares, the 2nd largest crypto fund, managed assets of $2.9 billion in the latest week, down from $3.4 billion on January the 8th.
“We believe investors have been very price conscious this year due to the speed at which prices in bitcoin achieved new highs,” said James Butterfill, investment strategist, in CoinShares.
“The recent price weakness, prompted by recent comments from Secretary of the US
S Treasury Janet Yellen and the unfounded concerns of a double spend, now look to have been a buying opportunity with inflows breaking all-time weekly inflows,” he added.
Bitcoin dropped to a low of $28,800 on Friday, after climbing an all-time summit of $42,000 on Jan.8. It was last down 0.5% at $32,124.
About 97% of inflows went to bitcoin, the data showed, with Ethereum, the 2nd biggest cryptocurrency, posting inflows of $34 million last week.
So far this season, volumes in bitcoin have been considerably higher, trading an average of $12.3 billion per day, compared to $2.2 billion in 2020.
Glassnode, which provides insight on blockchain information, stated in a report on Monday that bitcoin’s net unrealized profit/loss (NUPL) was getting close to surpassing the “belief” moving and range to the euphoria” range.
Before, when NUPL entered this range, it signalled a international top in bitcoin’s price.
The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Gertrude Chavez-Dreyfuss. Editing by Richard Chang.
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