Bitcoin and China NurPhoto/ Getty Images
In the week ending September 24, investors invested $50.2 million in bitcoin-backed assets, the highest level since April, CoinShares reported Tuesday.
The largest inflows to Ether-backed assets since June began at $28.9 Million.
Investors see China's ban on Friday as a buying opportunity, not a deterrent. This is evident by the continued inflows.
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According to CoinShares' weekly report, Monday's CoinShares Weekly Report, bitcoin investment reached its highest level in four months during the week ending September 24, when China declared it would ban trading and mining cryptocurrencies. This triggered an aggressive sell-off which traders used to buy bitcoin.
The data revealed that assets backed by bitcoin attracted the most investment with inflows of $50.2 millions over the week ended September 24, the highest since April 19.
Inflows of assets backed with ether totaled $28.9million, which is the highest inflows since June 7. Solana-backed assets received inflows in the amount of $3.9 million, while cardano-backed products received inflows in the amount of $2.6 million.
These inflows continued despite China's ban on crypto-related activities in China on Friday, which resulted in a sharp drop in crypto prices. Bitcoin dropped almost 6% below $42,000, while ether plummeted almost 8% to hover at $2,800 before slowly recovering in the days that followed.
The report stated that "continued inflows suggest that the recent headwinds to digital assets, such the widened China ban were seen as buying opportunities by investors."
Bitcoin has received $100.9 million in inflows over the past month, while solana has received $59.8million in inflows. The total amount of Ether assets has increased by $35.1million, the largest portion coming in last week.
China's ban on tokens led to a surge in the buying of tokens linked to decentralized exchanges. These exchanges do not rely upon intermediaries and market watchers believe that this would be a benefit to Chinese users who are trying to bypass the restrictions.
On Monday, so-called "DEX tokens", such as uniswap and sushi, soared by up to 40% in some cases. These platforms are all powered by the Ethereum network. Investors have capitalized on this by betting heavily in the ether token.
The report stated that "Sentiment has remained relatively strong for ethereum, as the amount staked at Eth2.0 advances,"
