As Bitcoin Crashed On 'Ban' News, Many Chinese And Institutional Investors Used The Opportunity To Fill Their Coffers

As Bitcoin Crashed On 'Ban' News, Many Chinese And Institutional Investors Used The Opportunity To Fill Their Coffers

The Chinese ban on cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD is being seen as a buying opportunity by many institutional and Chinese investors.

What Happened: Digital asset investment products saw inflows of $95 million last week, bring the total inflows of the previous 6 weeks to $320 million, as per a blog by CoinShares, a digital asset investing firm.

See Also: How To Buy Bitcoin (BTC)

In the week ending Sept. 24, ETH inflows of $28.9 million followed Bitcoin, which saw the most inflows at $50.9 million.

Other notable inflows were seen in Solana and Polkadot at $3.9 million and $2.4 million respectively. 

“The continued inflows suggest the recent headwinds for digital assets, such as the widened China ban, were seen as buying opportunities for investors,” wrote CoinShares.

Why It Matters: On Friday, major coins plunged after the People’s Bank of China reiterated its warning on virtual assets not being legal tender in the country.

See Also: Is China Repeating A 600-Year-Old Mistake? A Historical Perspective On China's Crypto Crackdown

The ban has not acted as a deterrent even for Chinese cryptocurrency investors.

“These policies are not new to us, so we view them as a buy signal,” said Stephen, a cryptocurrency investor based in Shanghai, Bloomberg reported.

Some Chinese investors are turning to MetaMask, a digital wallet that allows for storage of cryptocurrency, purchase of non fungible tokens but also can be used to trade cryptocurrencies, an investor told Bloomberg.

Jonas Luethy, a sales trader at the United Kingdom-based digital asset broker GlobalBlock, said in an emailed note, “Decentralised exchanges Uniswap and Sushiswap have seen a surge in usage, which is likely a result of China’s ban on [centralized] exchanges.”

“Since DEX’s only require a crypto wallet and no KYC, it is much easier to use and can be set up in a matter of minutes,” said Luethy. 

Meanwhile, China’s internet censors have restricted the access of the country’s people to CoinMarketCap.com and CoinGecko.com —popular cryptocurrency aggregators. 
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