Profit! Investments In Bitcoin And Cryptocurrencies Reach IDR 3 Trillion
JAKARTA - The flow of investment into cryptocurrency funds and products continues to increase. In fact, this digital currency has reached its highest level of around US $ 245 million or equivalent to IDR 3 trillion.
It was noted that crypto or cryptocurrencies rose by 80 percent for the ethereum type on the Chicago Mercantile Exchange (CME), as quoted from CoinShares. So the total investment into cryptocurrencies so far this year has reached 2.4 billion US dollars.
This figure is an increase from last year's managed crypto assets which reached a record of around USD 37.6 billion. At the beginning of this year, the total inflow reached USD 6.7 billion.
Ethereum, the second largest cryptocurrency in terms of market capitalization and volume, raised $ 195.1 million from the total weekly flow. The annual flow for the digital asset reaches nearly $ 260 million.
Meanwhile, Bitcoin earned US $ 41.9 million from its weekly flow, for a total of USD 2.02 billion so far this year. The largest cryptocurrency has the lowest inflow since the all-time high seen in early January.
James Butterfill, investment strategist at CoinShares, said although bitcoin inflows were lower, there was "little evidence of profit taking with investors preferring to buy and hold."
In Monday 8 February trading, bitcoin rose to an all-time high of 44,899 US dollars, after Tesla Inc said it had invested about USD 1.5 billion in virtual currency and hoped to start accepting bitcoin payments for cars and other products in the near future.
Alongside bitcoin, ethereum also hit a record high of 1,779.43 US dollars.
"We saw this (Tesla's move) as an important moment for market validation but weren't surprised by the move," said David Grider, head of digital strategy, at Fundstrat Global Advisors.
"We think a lot of companies will look at that stored wealth and consumer base and start accepting crypto as a bigger means of payment."
Grayscale, the world's largest digital currency manager, recorded assets under management of USD 30.1 billion last week, up from USD 27.4 billion the previous week. CoinShares, the second-largest crypto fund manager, managed USD 3.7 billion in assets last week, also up from USD 3.4 billion from late January.