Cryptocurrency investment products and funds saw inflows for the fifth straight week as market sentiment for the sector continued to improve, data from digital asset manager CoinShares showed on Monday.
Cryptocurrency inflows for the week ended September 17 totaled $ 41.6 million (approx). The data showed that the tributaries were seen across the board. Bitcoin price in India was Rs. 34.02 lakhs as of 11:00 a.m. IST on September 21st.
Digital currency inflows for 2021 were still a robust $ 5.96 billion (roughly Rs 43,870 billion).
“This improved sentiment could be a seasonal phenomenon, but we are not seeing a corresponding increase in volume 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 surge in popularity of alt coins,” he added.
Bitcoin suffered the most from negative investor sentiment, with inflows in just three of the past 16 weeks, the report said. Over the course of this year, the total market share of assets under management fell from 81 percent in January to just 67 percent last Friday, she added.
Overall, bitcoin inflows for the year totaled $ 4.2 billion (roughly Rs 30,910 billion).
Blockchain data provider Glassnode recognized the current macroeconomic backdrop in its most recent announcement on Monday, which was shaped by growing uncertainties in the Chinese credit markets. However, it found that even amid this landscape, “Bitcoin price action and the reactions of investors in the chain appear relatively robust”.
Glassnode believes Bitcoin is creating a “consolidation trading range”.
Bitcoin hit an almost 4-month high of over USD 52,000 (approx. 38 lakhs) on September 6, but is currently down 7.4 percent to USD 43,748 (approx. 32 lakhs).
Grayscale remains the largest crypto asset manager with assets under management of 43.2 billion rupees (about 3.18.020 rupees.) Up from about 28.5 billion rupees (about 2.09.800 rupees) in the middle to Beginning of August.
The AUM at CoinShares, the second largest digital wealth manager, was $ 4.2 billion (approximately Rs 30,920 billion).
© Thomson Reuters 2021
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