Institutional investors are reportedly looking at China’s latest crypto ban as an opportunity to accumulate more digital assets at discounted prices.
In their new weekly report, digital asset manager CoinShares says that Bitcoin (BTC) saw the largest inflows of institutional capital of any crypto on the market despite facing negative sentiment and pressure from China.
[adinserter block="1"]“The continued inflows suggest the recent headwinds for digital assets, such as the widened China ban, were seen as buying opportunities for investors.
Bitcoin saw the largest inflows of any investment product, totaling US$50m, although, it has experienced the brunt of negative investor sentiment over the last two quarters. Last week marks only the 4th week of inflows out of the last 17.”
The People’s Bank of China (PBoC) released a memo on Friday announcing a blanket ban on Bitcoin and crypto transactions, saying that it facilitated a number of harmful things.
“Recently, virtual currency trading hype activities have risen, disrupting the economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people’s property.”
As Bitcoin investors seem relatively unphased by China’s hard line against cryptocurrencies, CoinShares says that Ethereum is closely following BTC, partially because of the amount of staking on ETH 2.0.
“Ethereum followed Bitcoin with inflows totalling US$29m last week. Sentiment has remained relatively buoyant for Ethereum as the amount staked to Eth 2.0 progresses.
By our estimates, 6.6% of Ethereum is staked to Eth 2.0, with growth in staking essential for investor sentiment, as investors see it as a potential environmentally alternative to other proof-of-stake digital assets.”
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