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Institutional Bitcoin Products Generated Massive Inflows Amid China FUD

Undoubtedly, the recent China FUD caused an upset in the market, resulting in an almost 6% decline in BTC prices. Shortly after the Asian country announced the ban on all crypto-related activities in the country on Friday, BTC witnessed a sharp decline trading below $42k. Meanwhile, institutional investors were buying the dip during the period and had been doing that before the September 24 announcement. 

On the back of the FUD, crypto investments products generated over $95M last week. The inflow was between September 20 and 24, marking it a 126% increase from last week. CoinShare’s weekly report on Digital assets revealed that the rise in dip purchasing drove institutional crypto products inflows to a sixth straight week. 

BTC and ETH Leading the Charge 

Out of the inflows recorded last week, BTC accounted for the highest with $50.2M worth of inflows. ETH generated the second highest with $28.9M. 

Although Bitcoin investment products have witnessed outflows in thirteen out of the last seventeen weeks, sentiments surrounding the asset rose in September as it had more inflows. For the past three weeks, Bitcoin products inflows had a 234% increase WoW. 

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While BTC and ETH remain the strong cryptos for Institutional investments, other cryptos such as SOL and ADA have begun to entice investors. Of the inflows recorded during that period, SOL posted an inflow of $3.9M. Cardano’s ADA posted $2.6M, while DOT posted an inflow of $2.4M. 

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China Continues to Hit the Crypto Market 

The People’s Bank of China had initially discussed some strict measures designed to hit the crypto market weeks before it was finally picked by the media outlets last week. The memo outlined that all cryptocurrency-related activities, including crypto service offerings from banks and other financial institutions, were barred. The ban triggered a dip in BTC price, but the flagship crypto has recovered more than half of the loss since Monday’s intra-trading market. 

China’s recent announcement on the crypto ban isn’t the first time that the Asian country is hitting the crypto industry. Before the September 24 ban, China issued a ban on mining in June, leading to the exits of several mining firms from the country. Miners settled in European countries like Russia, while the rest set up bases in the North American region.

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In the same month, the PBoC issued a directive to all banks and payment service providers to stop providing crypto-related services to clients involved in virtual assets transactions. BTC prices dipped after the announcements but came back stronger each time. It signifies the resilient nature of Bitcoin. 


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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