While institutional Bitcoin products have witnessed withdrawals in 13 of the last 17 weeks, the industry has now seen inflows for three weeks in a row and institutional investors find this as an opportunity and purchased the dip.
Institutional investors bought the drop in response to China’s latest FUD, with digital asset investment products garnering inflows of $95 million last week.
According to CoinShares’ Sept. 27 Digital Asset Fund Flows Weekly report, a rise in dip buying helped propel institutional crypto investment products to a sixth consecutive week of inflows.
Between Sept. 20 and Sept. 24, inflows totaled $95 million, a 126 percent increase in weekly inflows. BTC and Ether investment products received the highest inflows of $50.2 million and $28.9 million, respectively.
While BTC investment products have witnessed outflows in 13 of the last 17 weeks, positive sentiment toward the asset increased in September, with inflows over the previous three weeks. Additionally, inflows into Bitcoin-related assets grew by 234 percent week over week.
Institutional enthusiasm for altcoins looks to be high, with products monitoring Solana (SOL), Cardano (ADA), and Polkadot (DOT) reporting $3.9 million, $2.6 million, and $2.4 million in inflows, respectively. Additionally, multi-asset funds received $6.4 million in inflows this week.
The colossal FUD wall
On Sept. 24, the People’s Bank of China (PBoC) published a directive prohibiting all crypto transactions, precipitating an 8% decline in the price of Bitcoin (BTC) and a wider market downturn.
The PBOC’s new restrictions — which were first issued on Sept. 3 but were only picked up by western media sources last week — stated that financial institutions and payment corporations are prohibited from providing any services linked to cryptocurrency transactions.
While Chinese officials’ FUD has traditionally had an effect on crypto markets, it has also functioned as a trigger for price spikes or bull runs in the months following the statements.
China’s government barred cryptocurrency exchanges from providing services to domestic consumers in September 2017, while also prohibiting residents from engaging in initial coin offerings. Following the double-ban, the price of BTC climbed to a then-all-time high of about $20,000.
Also Read: Singapore Binance Bans Fiat Deposits, Crypto Trading, And Crypto Purchases
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