By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – Cryptocurrency products and funds posted inflows in the latest week, with investors undeterred by the latest price corrections, weekly data from digital asset manager CoinShares showed on Monday.
Institutional investors poured in $154 million in the crypto sector in the week ended Nov. 19, with a year-to-date total of $9.2 billion, already exceeding total inflows of $6.7 billion in 2020.
Bitcoin got the lion’s share of inflows with $114.4 million, equivalent to 74% of the total. So far this year, total inflows into bitcoin products and funds hit $6.7 billion.
The inflows came despite a 10.4% drop in bitcoin last week. On Monday, bitcoin was down 4.5% at $56,042. The world’s largest cryptocurrency hit a record high of $69,000 on Nov. 10.
“Bitcoin was ripe for a pullback and it might not be over yet before traders confidently feel a bottom has been made,” said Edward Moya, senior market analyst at OANDA in New York.
Blockchain data provider Glassnode, in its latest research report on Monday, said bitcoin holders took profits after it hit a record high earlier this month.
“Spikes in on-chain profit-taking during bullish impulses are to be expected as price climbs to new highs, and are typical for any bull market. As the realization of profits increase, so too does the probability of establishing a macro top,” Glassnode said.
Ethereum saw inflows for a fourth straight week, of $12.6 million. Total inflows in the last four weeks were about $80 million.
Some altcoins though, for the first time in many months, saw minor outflows, such as Cardano, with outflows of $2.1 million, data showed.
But inflows into Solana, another public blockchain, totaled $8 million. By measure of total inflows over the last month, Solana has seen inflows of $43 million over the last month versus Cardano’s $23 million.
Assets under management at Grayscale and CoinShares, the two largest digital asset managers, were at $51.62 billion and $6.5 billion, respectively.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Richard Chang)
Copyright 2021 Thomson Reuters.