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.
“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.”
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/eskystudio
The post Investors See Latest China Ban As Opportunity To Scoop Up More Crypto: CoinShares appeared first on The Daily Hodl.
source https://dailyhodl.com/2021/09/27/investors-see-latest-china-ban-as-opportunity-to-scoop-up-more-crypto-coinshares/