- CoinShares said Tuesday that investors put $50.2 million in bitcoin-backed assets in the week to September 24, the highest level since April.
- Ether-backed assets saw $28.9 million in inflows, the most since early June.
- The steady flows suggest that investors saw last week’s China ban as a buying opportunity rather than a deterrent.
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Investment in bitcoin hit a four-month high in the week ending September 24, when China announced it would ban cryptocurrency trading and mining, leading to a massive selloff that traders used as a buying opportunity, according to a CoinShares weekly report on Monday. .
The data showed that bitcoin-backed assets attracted the most investment, with inflows of $50.2 million over the week ending September 24, the most since the week of April 19.
There were also $28.9 million in ether-backed asset inflows, the most since June 7. Solana-backed assets saw inflows of $3.9 million, and Cardano-backed products had inflows of $2.6 million.
These flows continued despite the apparent ban imposed by China on all crypto-related activities on the mainland on Friday, which led to a sharp drop in cryptocurrency prices. Bitcoin tumbled nearly 6% to below $42,000 and Ether fell nearly 8% to hover around $2,800 before recovering steadily in the following days.
“The on-going flows suggest that recent digital asset headwinds, such as the expanded Chinese ban, have been seen as buying opportunities for investors,” the report said.
Over the month so far, bitcoin has seen inflows of $100.9 million, and Solana has seen inflows of $59.8 million. Ether’s assets grew by $35.1 million, with the majority arriving last week.
A side effect of the Chinese ban has been the increased purchase of tokens linked to decentralized exchanges, which do not rely on any type of intermediary and which market watchers said would particularly benefit Chinese users looking to circumvent existing restrictions.
On Monday, so-called “DEX tokens” such as uniswap, sushi or pie, rose in some cases by nearly 40%. Most of these platforms run on the Ethereum network, so investors have taken advantage of this by betting heavily on the Ether token of the blockchain.
“Sentiment remained relatively high for Ethereum with the amount earmarked advancing to Eth2.0,” the report said.