China’s crypto ban seen as buying opportunity for investors with $95M inflows into digital assets: Report

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September 28, 2021 9:18 PM

In terms of assets under management (AuM), both Solana and Polkadot continued witnessing outsized inflows worth $3.9 million and $2.4 million, making up for 4.5 per cent and 3.2 per cent of AuM respectively.

bitcoin price crasHes investor in dilemma what to do know here what expert say for bitcoin cryptocurrency investmentChina’s central bank People’s Bank of China in a statement on September 15 (and posted online last week) had announced a ban on all crypto transactions in China, effectively banning cryptos including Bitcoin.(Image: Reuters)

Digital assets including Bitcoin, Ethereum, Binance, Solana, and others saw inflows worth $95 million last week, taking the total inflows over the past six weeks to $320 million. This suggested that the recent headwinds for digital assets including China’s ban on cryptocurrencies were seen as buying opportunities by investors, digital asset management firm CoinShares said in its weekly report on digital asset fund flows.

China’s central bank People’s Bank of China in a statement on September 15 (and posted online last week) had announced a ban on all crypto transactions in China, effectively banning cryptos including Bitcoin. As a result, multiple cryptocurrencies saw a decline in their prices including Bitcoin.

Perhaps as a result, “Bitcoin saw the largest inflows of any investment product, totalling $50 million, although, it has experienced the brunt of negative investor sentiment over the last two quarters,” the report noted. Ethereum followed Bitcoin with inflows totalling $29 million last week. “Sentiment has remained relatively buoyant for Ethereum as the amount staked to Eth2.0 progresses. By our estimates, 6.6% of Ethereum is staked to Eth2.0, with growth in staking essential for investor sentiment, as investors see it as a potential environmentally alternative to other proof-of-stake digital assets.” Coinshares noted.

Also read: Bitcoin’s dominance in global crypto market contracts; share in total crypto mcap down by 41% this year

In terms of assets under management (AuM), both Solana and Polkadot continued witnessing outsized inflows worth $3.9 million and $2.4 million, making up for 4.5 per cent and 3.2 per cent of AuM respectively. Bitcoin and Ethereum had the largest shares worth $35,584 million and $12,987 million respectively in the total AuM worth $52,646 million of all digital assets.

In the preceding week, Etherum competitor Solana was the favourite digital asset among investors globally. The cryptocurrency attracted $49.4 million – 86.4 per cent of total inflows worth $57.2 million during the week into different digital assets. The weekly report by CoinShares summarises investment inflows and outflows in popular ETPs, mutual funds, and OTC trusts referencing Bitcoin, Ether, and other digital assets.

The suggestions/recommendations around cryptocurrencies in this story are by the respective commentator/report. Financial Express Online does not bear any responsibility for their advice. Please consult your financial advisor before dealing/investing in cryptocurrencies.

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