Crypto Funds Draws Most New Money in 3 Weeks Even as China Cracks Down
Bitcoin had $50 million in inflows last week.
Investors pumped $95 million into digital asset products last week, more than double the prior week’s pace, according to a CoinShares weekly report.
With the headwinds that digital assets have faced recently, such as China’s ban, the inflows suggest that price declines may have been seen as buying opportunities.
The flows into crypto funds during the week ended Sept. 24 were the most since the $98 million in the week through Sept. 3, and brought total inflows over the last six weeks to $320 million.
Bitcoin saw the largest inflows of any crypto investment product with a total of $50 million, also the most in three weeks, although bitcoin has experienced the brunt of negative investor sentiment over the last two quarters, the report said. Funds focused on the largest cryptocurrency by market value have suffered outflows in all but four of the past 17 weeks.
For Ethereum, sentiment has remained relatively buoyant; funds focused on the blockchain’s native cryptocurrency, ether (ETH), had inflows of $29 million last week. The prior week, ether-focused funds saw $6.6 million in inflows.
The report estimates 6.6% of Ethereum’s total supply is staked to Eth 2.0 – a planned upgrade of the blockchain network that aims to increase transaction capacity, reduce fees and make the network more sustainable and efficient.
“Growth in staking is essential for investor sentiment,” the report stated. “Investors see it as a potential environmentally alternative to other proof-of-stake digital assets.”
Meanwhile, Solana and Polkadot continued to attract interest from investors. Solana-focused funds brought in $3.9 million, representing 4.5% of new assets under management, while Polkadot-focused funds attracted $2.4 million, or 3.2%
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