Enterprise Bitcoin products have seen outflows in 13 of the last 17 weeks, while the industry is currently seeing an influx of investments for three consecutive weeks. Some altcoin projects have also experienced a nice flow of institutional funds.
Some altcoin projects experienced nice institutional funds flow
Institutional investors bought the dip amid China’s latest FUD, as crypto investment products brought in $95 million in inflows last week. According to CoinShares’ weekly report dated September 27, the increase in bottom buying has helped increase institutional cryptocurrency investment product inflows overall for the sixth week in a row. Investment inflows of 95 million dollars in the 20-24 September period mean an increase of 126% in weekly inflows. In investment products, BTC and Ether top the list with entries of $50.2 million and $28.9 million, respectively.
Despite an outflow in BTC investment products in 13 of the last 17 weeks, the positive mood for BTC rose in September as inflows were recorded in the last three weeks. The flow of Bitcoin products also increased by 234% in one week. The institutional appetite for altcoin projects looks strong: Solana (SOL), Cardano (ADA) and Polkadot (DOT) recorded inflows of $3.9 million, $2.6 million and $2.4 million in their following products, respectively. Multi-asset funds also saw $6.4 million in inflows last week.
What will Chinese FUD bring to Bitcoin and cryptocurrencies?
On September 24, the People’s Bank of China (PBoC) issued a note announcing the ban on all cryptocurrency transactions, resulting in an 8% drop in the price of Bitcoin (BTC) and a wider pullback in the crypto market. The PBOC’s updated measures taken on Sept. 3, before it was published by western media last week, states that financial institutions and payment firms are prohibited from providing any services related to crypto transactions.
As we previously reported , FUD news from Chinese regulators has historically affected the cryptocurrency markets, but acted as a catalyst for price increases or bull races in the months following the announcements. In September 2017, the Chinese government banned crypto exchanges from providing services to users in the country, and also prohibited citizens from participating in initial coin offerings. After the double ban, the BTC price hit an all-time high of around $20,000, a historic increase from the $4,000 range. Could a similar trend happen again? We will watch and see…