Crypto system products were hit by record drains at the beginning of the year

cryptocurrency plant products suffered records in January because falling token prices and a broader escape from risky assets reversed the fate of a sector that had a raging interest last year.

vehicles such as the Grayscale Bitcoin Trust, which enables investors to engagement in crypto-assets without keeping the tokens directly, attracted $ 2021 billions of dollars, as asset managers such as Proshares, Vaneck and Wisdomtree for the introduction of products and the conquest of a market share.

According to data from CryptoCOMPARE, the flood of cash in January, however, turned over for the first time since last summer after the crypto prices had fallen heavily and Bitcoin from a maximum of almost $ 69,000 in November to less than $ 40,000. In January,

Investors deducted an average of $ 61 million from vehicles for digital assets every week, which, according to CryptoCommare, which has been pursuing 50 of the largest investment vehicles for digital assets such as trusts and listed products that have been the fastest pace for at least one year.

of the $ 25 billion, heavy Grayscale Bitcoin Trust, which does not allow withdrawals, found more sellers than buyers for his shares in January, which sent the discount between the share price and the value of the trusted assets to a record level of around 25 percent.

The average daily trade volumes of these products have also been reached since July.

The decline was carried out in a month in which crypto prices, especially in stocks, especially in the case of US technology stocks, were precisely discarded as investors, which were considered speculative and risky.

Michael Sonnenshein, CEO of Grayscale Investments, said that institutional investors had sold digital assets in addition to growth shares, partly in expectation of interest rate increases by the US Federal Reserve.

"It is important to note that there is still a significant investor's request for investment products for digital assets, but apparently the institutions have reacted to the Fed by rejected their positions," he added.

The increasing presence of great professional investors on the cryptoma markets has led to a greater alignment between crypto and technology stocks, since the institutions treat both assets as more risky investments with higher growth potential and tend to sell them at the same time.

"Crypto has definitely correlated more with risk systems than expected. In the past month, it has been more like a technology share than anything else," said Greg Taylor, Chief Investment Officer from Purpose Investments, which manages several crypto assets with total assets of more than 1 billion US dollar.

"January was a great risk month," he added.

The lengthy drains after a drop in prices indicate that investors are still hesitating to "buy" the dip in crypto-assets. But Taylor said that there are buyers on the market. "The 'Buy the Dip' mentality is still alive in crypto.