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Cryptocurrencies post 5th straight week of inflows -CoinShares

Cryptocurrencies post 5th straight week of inflows -CoinShares

FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken June 29, 2021. REUTERS/Dado Ruvic/Illustration

NEW YORK : Cryptocurrency investment products and funds saw inflows for a fifth consecutive week as market sentiment on the sector continued to improve, data from digital asset manager CoinShares showed on Monday.

Crypto inflows amounted to US$41.6 million for the week ended Sept. 17, with bitcoin getting the bulk of inflows at US$15.3 million, and ether products garnering US$6.6 million. The data showed that inflows were seen across the board.

Digital currency inflows for 2021 were a still a robust US$5.96 billion.

"This improved sentiment could be a seasonal phenomenon, but we are not seeing a commensurate rise in volumes in investment products," said James Butterfill, investment strategist, at CoinShares.

"This suggests that some investors are taking advantage of recent price weakness and the continued rise in alt-coin popularity," he added.

Bitcoin has suffered the most from negative investor sentiment with inflows in only three of the last 16 weeks, the report said. Over the course of this year, its total market share of assets under management has fallen from 81per cent in January to just 67per cent as of last Friday, it added.

Overall, bitcoin inflows for the year amounted to US$4.2 billion.

Blockchain data provider Glassnode, in its latest note on Monday, acknowledged the current macroeconomic backdrop that featured growing uncertainties in Chinese credit markets. But it noted that even amid this landscape, "bitcoin price action, and on-chain investor responses appear relatively robust."

Glassnode believes bitcoin is forming a "consolidation trading range."

Bitcoin hit a near four-month high above US$52,000 on Sept. 6, but was currently down 7.4per cent at US$43,748.

Grayscale is still the largest crypto asset manager, with US$43.2 billion in AUM, up from about US$28.5 billion around mid- to early August.

AUM at CoinShares, the second biggest digital asset manager, were at US$4.2 billion.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Marguerita Choy)

Source: Reuters

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