The Chinese ban on cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) 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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