Bitcoin and crypto flows hit record high last week: CoinShares

NEW YORK (Reuters) – Investment flows in cryptocurrency funds and products hit a record $ 1.31 billion last week after a few weeks of small outflows, as investors took advantage of falling prices. price of bitcoin and other digital assets, according to the latest data from Monday from asset manager CoinShares.

Total assets under management (AUM) in the industry slipped to $ 29.7 billion on January 22, from an all-time high of $ 34.4 billion on January 8. At the end of 2019, total assets were only $ 2 billion.

Grayscale, the world’s largest digital currency manager, posted $ 24 billion in assets under management last week, up from $ 28.2 billion on January 8. CoinShares, the second largest crypto fund, managed assets of $ 2.9 billion last week, also down from $ 3.4. billion on January 8.

“We believe investors have been very price conscious this year due to the speed at which bitcoin prices have reached new highs,” said James Butterfill, investment strategist at CoinShares.

“The recent weakness in prices, sparked by recent comments from US Treasury Secretary Janet Yellen and unfounded concerns about double spending, now appears to have been a buying opportunity with entries breaking the all-time weekly entries. “, he added.

Bitcoin fell to $ 28,800 on Friday, after hitting an all-time high of $ 42,000 on January 8. It was last down 0.5% to $ 32,124.

About 97% of entries went to bitcoin, according to the data, with Ethereum, the second largest cryptocurrency, posting entries of $ 34 million last week.

So far this year, bitcoin volumes have been considerably higher, trading an average of $ 12.3 billion per day, up from $ 2.2 billion in 2020.

Glassnode, which provides insight into blockchain data, said in a report Monday that Bitcoin’s Net Unrealized Profit / Loss (NUPL) was about to exceed the ‘belief’ range and move into the range. of “euphoria”.

Previously, when NUPL entered this range, it was signaling a global high in the price of bitcoin.