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Cryptocurrencies see sixth straight week of inflows, led by bitcoin: Data

Cryptocurrencies see sixth straight week of inflows, led by bitcoin: Data

Representations of Bitcoin and other cryptocurrencies are seen amid China's flags in this illustration picture taken September 27, 2021. REUTERS/Florence Lo/Illustration

NEW YORK: Cryptocurrency investment products and funds posted inflows for a sixth consecutive week, as investors viewed recent regulatory challenges in the sector as buying opportunities, data from digital asset manager CoinShares showed on Monday (Sep 27).

Inflows to the sector hit US$95 million last week, led by investments in bitcoin of US$50.2 million, according to CoinShares data as of Sep 24. Over the last six weeks, crypto inflows amounted to US$320 million. For 2021, inflows were US$6 billion.

Bitcoin bore the brunt of negative investor sentiment of the last two quarters. Last week's inflows were just the fourth week of inflows out of the last 17. So far this year, inflows into bitcoin remained robust at US$4.3 billion.

On Friday, China's most powerful regulators intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto- and blockchain-related stocks.

But analysts said investors on Monday seemed to have shrugged off the news.

"Once again we're seeing some real resilience in bitcoin, which at one stage was pushing US$40,000," said Craig Erlam, senior market analyst at OANDA in London.

Bitcoin was last down 0.2 per cent at US$43,108.

Blockchain data provider Glassnode, in its latest research note on Monday, pointed to the "relatively low utilisation" of the bitcoin block-space, which can be both a bearish and bullish signal.

It added that current transactions on bitcoin are at 175,000 to 200,000 per day, "which are similar to levels seen in the 2018 bear market".

CoinShares data also showed ether products had the second most inflows last week at US$29 million, as investors looked to further improvements in the Ethereum blockchain.

Ether though on Monday was down 2.1 per cent at US$3,000.88.

Assets under management at Grayscale and Coinshares, the two largest digital asset managers, dipped last week to US$38.016 billion and US$3.671 billion, respectively, pressured by the decline in crypto prices following China's regulations news on Friday.

Source: Reuters/jt

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