According to data from digital asset manager CoinShares, cryptocurrency investment products and funds saw inflows for the sixth week in a row, as investors saw recent regulatory issues in the sector as buying opportunities.
According to CoinShares data as of September 24, inflows to the industry reached $95 million (approximately Rs. 700 crores) last week, topped by investments in Bitcoin of $50.2 million (about Rs. 370 crores). Cryptocurrency inflows totaled $320 million in the last six weeks (roughly Rs. 2,360 crores). Inflows were $6 billion in 2021. (roughly Rs. 44,250 crores).
As of 11:30 a.m. IST on September 28, the price of bitcoin in India was Rs. 33.64 lakhs.
The last two quarters have seen Bitcoin bear the brunt of poor investor sentiment. Last week’s inflows were only the fourth of the last 17 weeks of inflows. Inflows into Bitcoin have remained strong so far this year, totaling $4.3 billion (roughly Rs. 31,710 crores).
China’s most powerful regulators stepped up their crackdown on cryptocurrencies on Friday, imposing a blanket ban on all crypto transactions and mining, putting pressure on Bitcoin and other major coins as well as crypto- and blockchain-related companies.
Investors, on the other hand, appeared to dismiss the news on Monday, according to analysts.
“Once again we’re seeing some real resilience in Bitcoin, which at one stage was pushing $40,000 (roughly Rs. 29.5 lakhs),” said Craig Erlam, senior market analyst at OANDA in London.
Bitcoin was recently trading at $43,108, down 0.2 percent (roughly Rs. 31.8 lakhs).
Glassnode, a blockchain data provider, alluded to the “relatively low utilisation” of the Bitcoin block-space in its latest research note on Monday, which can be both a pessimistic and positive signal.
It went on to say that current Bitcoin transactions are between 175,000 to 200,000 per day, “which are similar to levels seen in the 2018 bear market.”
According to CoinShares data, Ether products had the second-highest inflows last week, at $29 million (approximately Rs. 210 crores), as investors awaited additional Ethereum network advancements. As of 11:30 a.m. IST on September 28, the price of ether in India was Rs. 2.32 lakhs.
Ether, on the other hand, was down 2.1 percent on Monday, trading at $3,000.88. (roughly Rs. 2.2 lakhs).
Grayscale and Coinshares, the two largest digital asset managers, saw their assets under management drop last week to $38.016 billion (roughly Rs. 2,80,370 crores) and $3.671 billion (roughly Rs. 27,070 crores), respectively, due to the drop in crypto prices following China’s regulatory announcement on Friday.