Concerns about Government and Cryptocurrency Investments
Recent concerns about the government have led to increased investments in cryptocurrency products. Between September 23 and 29, there was a surge in buying these investment products during the lockdown. CoinShares reported that the flow of digital asset investment reached $21 million last week. Experts believe that most of this activity occurred in the week leading up to the end of the financial year, as there was uncertainty about the distribution of budget funds for various departments.
“The recent territorial dispute continues, with the United States witnessing outflows totaling $19 million last week, while Europe and Canada witnessed inflows of $23 million and $17 million respectively.”
– Quinn Shares reports
Bitcoin (BTC) funds saw an inflow of $20.4 million after a previous outflow of $6 million. In terms of cryptocurrency structures that allow open investments, investors withdrew $1.5 million, compared to $2.8 million the previous week.
Altcoin-based products showed mixed dynamics. Ethereum (ETH) funds saw investors releasing $1.5 million, down from $2.2 million in the previous week. On the other hand, products based on Solana (SOL) raised $5.1 million.
Despite European investors showing interest in cryptocurrency products last week, they were unable to reverse the negative trend. According to a CoinShares report, investors have withdrawn $294 million from the industry since the beginning of the year. In the reporting period, the outflow amounted to $9 million, while the trading volume reached $820 million, which is below the average for the year ($1.3 billion).
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