NEW YORK (Reuters) – Investments in funds and cryptocurrencies hit a record $ 1.31 billion last week after weeks of low outflows as investors took advantage of falling prices for bitcoin and other digital assets, according to the latest Monday data from asset manager CoinShares.
Total managed assets (AUM) in the industry fell to $ 29.7 billion as of Jan. 22, from a high of $ 34.4 billion on Jan. 8. At the end of 2019, the total AUM was only $ 2 billion.
Grayscale, the world’s largest digital currency manager, posted $ 24 billion in assets under management last week, down from $ 28.2 billion on January 8th. CoinShares, the second-largest cryptocurrency fund, managed $ 2.9 billion in assets in the last week, also down from $ 3.4 billion on January 8th.
“We believe that investors have been very price-conscious this year due to the speed with which bitcoin prices have reached new highs,” investment strategist James Butterfill told CoinShares.
“The recent weakness in prices caused by recent comments by US Treasury Secretary Janet Yellen and the unfounded concerns of double spending now seem to have been a buying opportunity, with entries breaking all-time weekly entries,” he added. he.
Bitcoin fell to a low of $ 28,800 on Friday, after climbing an all-time high of $ 42,000 on January 8th. It was last down 0.5% at $ 32,124.
About 97% of entries went to bitcoin, the data showed, with Ethereum, the second largest cryptocurrency, recording entries of 34 million dollars last week.
So far this year, bitcoin volumes have been considerably higher, trading at an average of $ 12.3 billion a day, compared to $ 2.2 billion in 2020.
Glassnode, which provides information on blockchain data, said in a report on Monday that bitcoin’s unrealized net profit / loss (NUPL) was close to exceeding the “faith” range and moving into the “euphoria” range.
Earlier, when NUPL entered this range, it signaled a global top in the price of bitcoin.
Reporting by Gertrude Chavez-Dreyfuss; Edited by Richard Chang