Cryptocurrencies register sixth consecutive week of influx, led by bitcoin data -CoinShares

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By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – Investment products and cryptocurrency funds registered entries for the sixth week in a row, as investors viewed recent regulatory challenges in the industry as buying opportunities, showed Monday data from digital asset manager CoinShares.

Entries to the sector reached $ 95 million last week, driven by bitcoin investments of $ 50.2 million, according to CoinShares data as of September 24. In the past six weeks, crypto entries have risen to $ 320 million. For 2021, inflows were $ 6 billion.

Bitcoin has taken a toll on negative investor sentiment over the past two quarters. Last week’s entries were only the fourth week of entries out of the last 17. So far this year, bitcoin inflows have remained robust at $ 4.3 billion.

China’s most powerful regulators on Friday stepped up the crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and putting pressure on shares related to crypto and blockchain.

But analysts said investors appeared to have ignored the news on Monday.

“Once again, we are seeing real resilience in bitcoin, which at one point reached $ 40,000,” said Craig Erlam, senior market analyst at OANDA in London.

Bitcoin was last down 0.2% at $ 43,108.

Blockchain data provider Glassnode, in its latest research note on Monday, highlighted “relatively low usage” of bitcoin block space, “which can be both a bearish and bullish signal.

He added that current bitcoin transactions are 175,000-200,000 per day, “which is similar to the levels seen in the 2018 bear market.”

Data from CoinShares also showed that ether products had the second highest number of entries last week at $ 29 million, as investors sought further improvements in the Ethereum blockchain.

However, Ether on Monday was down 2.1% to $ 3,000.88.

Assets under management at Grayscale and Coinshares, the two largest digital asset managers, fell last week to $ 38.016 billion and $ 3.671 billion, respectively, under pressure from falling crypto prices at the Chinese regulatory news on Friday.

(Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)

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