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Cryptocurrencies post record inflows in first 11 months

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© Reuters. This illustration shows Bitcoin as a representation. It was taken on November 29, 2021. REUTERS/Dado Ruvic/Illustration

By Gertrude Chavez-Dreyfuss

NEW YORK, (Reuters) – Cryptocurrency funds and products saw record inflows during the first eleven months of this year. This was despite recent price drops, according to CoinShares data on Monday.

As of Nov. 26, total inflows to the sector had reached $9.5 trillion, an all-time record. Total bitcoin inflows reached $6.7 Billion by 2020.

Inflows totaled $306 Million for the week.

CoinShares data indicated that the largest inflows for this product were $247 Million in just five weeks, which was after it launched another European investment product.

Media reports claim that Invesco launched a European bitcoin-exchange-traded product. CoinDesk meanwhile reported that asset manager WisdomTree has listed a trio of crypto basket ETPs on Swiss stock exchange SIX and Frankfurt-based Börse Xetra.

CoinShares stated that for the 11th consecutive week, the largest cryptocurrency inflows have been at $2.7 billion.

Bitcoin inflows were driven by a 2.3% drop in price, following a 10.4% decrease the previous week. Bitcoin fell nearly 9 percent on Friday as investors sold the cryptocurrency amid concerns about the potential impact of Omicron, the COVID-19 variant. Last time it was up by 2% at $58,483.

“Inflation is skyrocketing and people are searching for more alternatives for their money in the bank,” said Ruud Feltkamp, chief of cloud-based automated crypto trading bot Cryptohopper.

I don’t believe it will take too long before investors start to see this as an opportunity for cheap buying. He said that we are still at the top of the bull market, but he believes rising inflation will result in more money going to crypto and stocks.

Inflows to Ethereum-based funds and products saw $23 million for the fifth consecutive week.

According to inflows relative assets under management, the winner is still and with 8.6% and $11.5 million respectively of AUM inflows, while 5.9% and $14.6 millions, respectively last week.

CoinShares announced it also tracks blockchain equity ETPs. It currently has an AUM $3.7 billion. The ETPs saw inflows last week of $20 million, and a total year-to date of $2 billion.

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