NEW YORK (Reuters) – Investment flow in cryptocurrency funds and products hit a record $ 1.31 billion last week after a few weeks’ small outflow, as investors reported the decline in bitcoin on Monday, according to the latest data. and other digital asset prices. from asset manager CoinShares.
Total assets under management (AUM) in the industry fell to $ 29.7 billion from January 22, from a high of $ 34.4 billion on January 8. At the end of 2019, the total AUM was just $ 2 billion.
Grayscale, the world’s largest digital currency manager, managed $ 24 billion under management last week, up from $ 28.2 billion on January 8. CoinShares, the second largest crypto fund, managed assets of $ 2.9 billion last week, also down from $ 3.4 billion on January 8.
“We believe investors have been very price-conscious this year because of the speed with which bitcoin prices have reached new highs,” investment strategist James Butterfill told CoinShares.
“The recent price weakening, following recent comments from US Treasury Secretary Janet Yellen and the unfounded concerns of double spending, now appears to have been a buying opportunity with inflows breaking weekly inflows,” he added.
Bitcoin fell to a low of $ 28,800 on Friday, after hitting a $ 42,000 all-time high on January 8. It was last 0.5% lower at $ 32 124.
About 97% of the inflow went to bitcoin, according to the data, with Ethereum, the second largest cryptocurrency, posting inflows of $ 34 million last week.
So far this year, volumes in bitcoin have been significantly higher, averaging $ 12.3 billion a day, compared to $ 2.2 billion in 2020.
Glassnode, which provides insight into blockchain data, said in a report on Monday that bitcoin’s net unrealized gain / loss (NUPL) almost exceeds the belief range and moves into the ‘euphoria range’.
Previously, when NUPL entered this series, it indicated a global peak in bitcoin’s price.
Reporting by Gertrude Chavez-Dreyfuss; Edited by Richard Chang