On the back of China’s newest FUD, institutional investors bought the drop, with crypto investment products garnering $95 million in inflows last week.
A rise in dip buying helped propel a sixth consecutive week of inflows for institutional crypto investment products, according to CoinShares’ Weekly report. The $95 million in inflows between Sept. 20 and Sept. 24 represent a 126 percent increase in weekly inflows. With $50.2 million and $28.9 million in inflows, respectively, BTC and Ether investment products led the field.
While outflows from Bitcoin investment products have occurred in 13 of the last 17 weeks, favourable sentiment towards the leading crypto asset has increased in September, with inflows for the previous three weeks. In addition, week-over-week inflows into Bitcoin products climbed by 234 percent. Institutional interest in altcoins appears to be high, with inflows of $3.9 million, $2.6 million, and $2.4 million, respectively, to products tracking Solana (SOL), Cardano (ADA), and Polkadot (DOT). This week, multi-asset funds received $6.4 million in inflows.
The People’s Bank of China (PBoC) issued a memo last week announcing a ban on all crypto transactions, prompting an 8% drop in the price of Bitcoin (BTC) and a larger selloff in the crypto market. Financial institutions and payment corporations are prohibited from offering any services linked to crypto transactions, according to the PBOC’s new restrictions, which were first issued on September 3 before being picked up by western media sources last week. While Chinese officials’ fear mongering has traditionally impacted crypto markets, it has also served as a fuel for price increases or bull runs in the months following the statements.