Cryptocurrency investors have been buying the Bitcoin ($BTC) and Ethereum ($ETH) price dip even as cryptoasset prices plunge, as data from Purpose Investments’ cryptocurrency exchange-traded funds (ETFs) shows their assets under management have risen throughout the market downturn.
The Purpose Bitcoin ETF, which was launched in February 2021, has been seeing significant inflows over the last few days, to the point its holders have risen to surpass 43,700 BTC. The ETF notably purchased over 2,000 BTC per day on more than one occasion.
Notably, Purpose’s ETFs saw their assets under management rise last month as a whole. According to CryptoCompare’s latest Digital Asset Management Review report, every digital asset manager saw their assets under management plunge last month except Purpose, which saw a rise in AUM.
According to the report, the firm purchased 6,227 Bitcoin and 81,436 Ethereum worth $183 million and $149 million respectively for their Bitcoin and Ethereum products. Notably, in May, Bitcoin investment products’ assets under management fell 26.8% to $24 billion, but gained market share to now represent 70.1% of total assets under management.
Ethereum investment products, meanwhile, saw their assets under management fall 33.9% to $8.52 billion, while “other” and “basket” investment products fell 30.1% and 32.7% to $1.118 billion and $509 million respectively.
CryptoCompare’s report details that weekly net inflows averaged $66.5 million compared to average weekly outflows of $49.6 million in April. Bitcoin-based investment products led the market when it comes to inflows, averaging $63.4 million a week, while Ethereum investment products saw $13.2 million in outflows per week.
The report comes shortly after JPMorgan said that cryptocurrencies are now the bank’s preferred alternative asset, as a major sell-off in the cryptocurrency space after the collapse of the Terra ecosystem hurt cryptos more than other alternative investments including private equity and private debt.
The sell-off in cryptocurrency markets seen earlier this year suggests there’s more room for cryptos to rebound, JPMorgan strategists wrote in a note
To JPMorgan’s analysts, the fair price for BTC is $38,000, Investors have moved away from riskier assets including cryptoassets this year over rising inflation and interest rates and Russia’s invasion of Ukraine.
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