Digital currencies continue to expand their influence in the various sectors of finance. This happens despite the negative events and news that seek to push these assets down. In the case of investment funds based on cryptocurrencies, they received about $ 63 million dollars, according to the CoinDesk portal.
These revenues correspond to the last evaluation week which ended last Friday. This is an important entry that breaks with 4 consecutive troubled weeks. It is important to note that this amount of income is diversified among various virtual currencies.
Among these, Bitcoin, ETH, Ada, XRP and Dot stand out. Bitcoin alone, the largest of the currencies in market capitalization, accounted for inflows of $ 39 million USD. The latter represents 62% of the total inflow of these digital asset funds.
What does the income that cryptocurrency investment funds received represent?
If it weren’t for the environment that exerts intense pressure to keep the price of digital currencies low, these would be at much higher levels. For example, when Bitcoin tries to take a bullish streak, it is surprised by some external action that causes selling pressure.
However, interest in cryptocurrencies continues to grow and this is reflected in the magnitude that investment funds received. As already highlighted, most of the $ 63 of revenue in the last week, corresponds to Bitcoin. But other currencies were not far behind.
In that sense, the income received by investment funds that offer services with ETH, the native cryptocurrency of the Ethereum network, stands out. This digital asset represented a significant income of $ 18 million after three consecutive weeks of negative results.
Other alternative cryptocurrencies or altcoins, they represented lower income for the investment funds that represent them. For example, XRP $ 1.2 million, Dot $ 2.1 million, and Ada $ 0.7 million.
Big investors are back
Another aspect highlighted by the aforementioned medium is that large investors would be returning to the ring of investments in cryptocurrencies. An example of this is the increase in the activity of the so-called whales with amounts between 1,000 and 10,000 BTC in their portfolios.
At the same time, the price of Bitcoin remains in an ambiguous state. This weekend and part of Monday it presented important bullish movements and then retreated.
At the time of writing, the price of this cryptocurrency in the buy and sell market is $ 33,841. However, the turmoil whose epicenter is in China, have not caused the collapse of Bitcoin. Its worst moment was the fleeting drop below the 30K support from which it recovered in a short time.
Why do many choose to invest in these funds?
Chief among the many reasons a person may have to invest is protection from volatility. Putting money in any asset is a decision that can bring dangers. The volatility of cryptocurrencies is one of the main fears of investors, so a mutual fund could be a rational action.
This is because the amounts are managed by professionals, who will know how to do diversified asset management. As the price of cryptocurrencies falls, the value can be transferred to metals like gold to preserve value. On the other hand, if BTC goes up, the gains could be significant.
Although many people tend to do this themselves, it must be remembered that others are not confident enough in their knowledge of the market. At that time, investment funds become important. With these, without having to be an expert in finance, you can participate in the crypto market.
It should be clear that the funds are not without risk either. Therefore, before taking a step in that direction, it is important to seek expert advice.
This material is purely informative and does not represent, in any way, an invitation to invest in funds.