NEW YORK (Reuters) – Investment flows in funds and cryptocurrency products hit a record high of $ 1.31 billion last week, after a few weeks of small outflows, as investors took advantage of the drop in bitcoin prices and of other digital assets, according to the most recent data on Monday from asset manager CoinShares.
Total assets under management (AUM) in the sector dropped to $ 29.7 billion on January 22, from a historic peak 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, released assets under management of $ 24 billion last week, up from $ 28.2 billion on 8 January. CoinShares, the second largest crypto fund, managed $ 2.9 billion in assets last week, also down from $ 3.4 billion on January 8.
“We believe investors are very concerned about prices this year due to the speed with which bitcoin prices have reached new highs,” said James Butterfill, investment strategist at CoinShares.
“The recent weakness in prices, triggered by recent comments by US Treasury Secretary Janet Yellen, and the unfounded concerns of double spending, now appear to have been a buying opportunity, with flows breaking weekly flows at all times. ”He added.
Bitcoin fell to $ 28,800 on Friday after reaching a peak of $ 42,000 on January 8. Finally, it dropped 0.5% to $ 32,124.
About 97% of tickets went to bitcoin, the data showed, with Ethereum, the second largest cryptocurrency, registering tickets of $ 34 million last week.
So far this year, bitcoin volumes have been considerably higher, trading an average of $ 12.3 billion a day, compared to $ 2.2 billion in 2020.
Glassnode, which provides information about the blockchain data, said in a report on Monday that bitcoin’s unrealized net profit / loss (NUPL) was getting close to exceeding the “belief” range and moving into the range of “euphoria”.
Previously, when NUPL entered this range, it signaled a global top in the price of bitcoin.
Reporting by Gertrude Chavez-Dreyfuss; Richard Chang edition