Institutional investors bought the decline on China’s latest FUD, with digital investment products generating $ 95 million in inflows last week.
According to CoinShares’ September 27th Weekly capital flows for digital assets A spike in dip purchases reportedly contributed to the sixth straight week of inflows for institutional crypto investment products by and large.
The $ 95 million inflows between September 20 and September 24 represent a 126% increase in weekly inflows. BTC and Ether investment products led the field with inflows of $ 50.2 million and $ 28.9 million, respectively.
While BTC investment products saw outflows for 13 of the last 17 weeks, sentiment on the asset rose in September as the last three weeks saw inflows. The inflows into Bitcoin products also increased by 234% on a weekly basis.
The institutional appetite for altcoins appears to remain strong, with the products tracking Solana (SOL), Cardano (ADA), and Polkadot (DOT) having inflows of $ 3.9 million, $ 2.6 million and $ 2.6 million, respectively. Recorded $ 2.4 million. Multi-asset funds also saw inflows of $ 6.4 million last week.
Related: Crypto has risen from China’s FUD over a dozen times in the past 12 years
The great wall of FUD
On September 24th, the People’s Bank of China (PBoC) released a memo announcing a ban on all crypto transactions that triggered an 8% drop in the price of Bitcoin (BTC) along with a wider retreat in the crypto market.
The PBOC’s updated measures – originally released on September 3 before being picked up by Western media outlets last week – set out that financial institutions and payment companies are banned from providing services related to crypto transactions.
While Chinese regulators’ FUD has influenced the crypto markets in the past, it also served as a catalyst for soaring prices or bull runs in the months following the announcements.
In September 2017, China’s government banned crypto exchanges from offering services to users in the country, and also banned citizens from participating in initial coin offerings. After the double ban, the BTC price rose from the $ 4,000 mark to an all-time high of around $ 20,000 at the time.