Top players in the industry tend to be solidifying their positions with the current dip in the value of bitcoin and the general correction in the cryptocurrency market.
A top crypto fund manager (CoinShares) told Reuters, a Canada-based multinational media firm, the weekly investment inflows in cryptocurrency funds hit 1.31 billion USD a week ago.
It shows an improvement after some weeks of outflows meaning the trust in bitcoin and other cryptocurrencies are intact, investors’ are ready to take advantage of any correction the market has to offer.
Total Assets Under Management (AUM) in the industry dropped to 29.7 billion US dollars on January 22 from an all-time high volume of 34.4 billion USD on January 8. The total AUM was $2 billion before the start of 2020.
An investment strategist at CoinShares, James Butterfill, “we believe investors are price sensitive this year because of the rate at which bitcoin prices attained new highs. The latest price instability, impelled by recent comments made by the US Secretary. Treasury Janet Yellen and the speculative interest in double-spending now seem to have been a buy option with inflows breaking all-time weekly highs.
Over 90% of the investment inflows went into BTC when Ethereum recorded thirty-four million dollars net inflows.
Bitcoin market volume in 2021 has increased drastically, trading an average of 12.3 billion dollars in a day compared to 2.2 billion USD last year.
Meltem Demiros, agrees that Bitcoin is the first option of any institution investing in cryptocurrency since the bitcoin liquid market is ten times the Ethereum market liquidity. This interview was with the CNBC squawk box after ETH hit an unsurpassed level on January 25, 2021.
What do you think? Share your comments below.