Despite market volatility, crypto investment funds raise $36 million

Time Stamp: March 1, 2022 10:07 AM
Source Node: 1888305

Last week, cryptocurrency investment funds saw a significant rise in inflows, indicating that institutional investors were still obtaining exposure to digital assets despite the market’s extraordinary volatility.

According to gathered data, digital asset investment products received $36 million in total inflows for the week concluding Sunday. In different regions, new investments were substantially skewed. There were $95 million inflows to the Americas and $59 million withdrawals to European investment products.

Inflows into Bitcoin products grew by $17 million, signifying the fifth week in a row of inflows totaling $239 million. Ether assets witnessed $4.2 million in inflows. Most altcoin funds had withdrawals of $2.6 million and $500,000, respectively, with Solana and Litecoin funds seeing outflows of $2.6 million and $500,000.

Inflows into Bitcoin-related assets have turned positive for 2022. This indicates that institutional investors are re-investing after a time of substantial volatility.

Requesting a ban on crypto exchanges for Russian addresses

The investors continued to invest in BTC funds last week, despite the fact that tensions in Eastern Europe heightened due to Russia’s military actions in neighboring Ukraine. Transactions on crypto exchanges that primarily operate in Russian Rubles have increased by 121% in the last week, according to the statistics.

On Monday, crypto markets were untouched by geopolitical concerns, even as stocks bowed to new selling pressure. According to gathered data, the Bitcoin price reached $41,476 on the day while the stocks were down more than 1%.

Mykhailo Fedorov, Ukraine’s vice prime minister and minister of digital transformation, officially requested a ban on Russian addresses used for crypto exchanges.

In other reports, despite a request from a Ukrainian government official, Coinbase will not ban transactions using Russian addresses. Coinbase is yet another platform of many that refused to comply with the Ukrainian government’s request.

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Furthermore, since being invaded by Russian soldiers, Ukraine has received $20 million in Bitcoin donations. Those donations were designated for military assistance.

Bitcoin showing momentum because of Russia’s invasion

The latest spike in bitcoin, according to veteran investor Mark Mobius, might be linked to Russians purchasing into the cryptocurrency. Mark is a founding partner of Mobius Capital Partners. The company is an active investment strategy for emerging and frontier market equities.

Mark believes that there is only one reason why bitcoin is showing such momentum these days. Undoubtedly, it is because the Russians have a method of getting their money out, getting their wealth out.

Bitcoin prices rose 10% on Monday after sanctions were placed on Russian organizations. Those sanctions are also affecting Russian banks. The reason behind the sanctions is Russia’s invasion of Ukraine.

Transactions on centralized bitcoin exchanges in both the Russian ruble and the Ukrainian hryvnia have reached all-time highs since the invasion began on Thursday.

The United States, its European allies, and Canada decided over the weekend to cut important Russian banks off from the SWIFT. SWIFT is an interbank messaging system. It connects over 11,000 banks and financial institutions in over 200 nations and territories.

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