The flow of capital into cryptocurrency funds and investment products fell sharply in the first week of January after hitting a new full-time high at the end of December.

According to CoinShares ’11. Digital Asset Stream report for January, only $ 29 million was spent on institutional cryptocurrencies in the first week of trading in the new year. That’s a 97% decrease from the $ 1.09 billion invested the week before Christmas. Volumes are likely to have decreased as traders take the New Year holidays.

However, the company also indicates that sharp December capital inflows have been accompanied by “evidence of potential earnings” recently, with weekly inflows of several crypto investment products recorded in early January.

CoinShares estimates that as of January 8, $ 34.4 billion in capital was invested in crypto investment products, of which $ 27.5 billion, or 80%, was invested in BTC blocking funds, and $ 4.7 billion, or nearly 13.5%, was invested. In ETH Products.

The report notes that Bitcoin funds also have higher volumes recently than they did during the rally in December 2017, and says: “This time we have seen much greater investor participation with net new assets of $ 8.2 billion. $ 534 million in December 2017.. .. ”

As the flow of funds across the sector has been steadily positive since May 2019, the report argues that cryptocurrency is “increasingly being used as a store of value”. CoinShares CEO Jean-Marie Mougnetti recently stated:

“The change of narrative around Bitcoin has been profound in the past six months. Previously, investors considered offering Bitcoin too risky. Now the risk is not to invest in Bitcoin.”

Source: CoinTelegraph