Crypto funds raised a record $ 1.31 billion in a week. 97% of them went to bitcoin
Inflows of investment in cryptocurrency funds and products hit a record $ 1.31 billion last week after weeks of reduced activity. Writes about this Reuters with reference to the data of the company CoinShares. Analysts associate the observed dynamics with the desire of investors to buy bitcoin and other digital assets on a pullback.
By January 22, the volume of assets under the management of crypto investment companies dropped to $ 29.7 billion from the peak of $ 34.4 billion recorded on January 8. At the end of 2019, the cumulative value was only $ 2 billion. The world's largest digital asset manager Grayscale last week reported the availability of $ 24 billion in its funds against $ 28.2 billion on January 8. The assets of the second largest crypto fund, CoinShares, fell from $ 3.4 billion to $ 2.9 billion over the same period.
“We believe that investors are watching the price very closely this year because of the speed at which bitcoin is reaching new highs,” said CoinShares investment strategist James Butterfill. "The recent weakness in the market, fueled by Janet Yellen's recent comments and unfounded concerns about re-spending, now looks like a buying opportunity as weekly inflows are renewing all-time highs."
According to the company, 97% of the funds received in such products were invested in bitcoin, followed by Ethereum with $ 34 million.
CoinShares lead strategist Meltem Demirors, speaking to CNBC on Monday, admitted that Bitcoin is the first choice of institutional investors, as its market is 10 times more liquid than the ether market. This, however, does not mean that they are not interested in the latter.
“We are seeing a fairly significant rise. When it comes to new applications, products and services, many of them are being built on the Ethereum network. Ethereum is prone to fundamental changes in market structure, ”she said, adding that one of the catalysts for such changes could be the upcoming Ethereum futures of the Chicago Mercantile Exchange (CME).