finbold.com
Vinay Nair, the CEO of investment search engine Magnifi, has stated that the platform is witnessing increased interest from investors seeking opportunities in the crypto markets despite the recent correction.
Speaking during an interview with CNBC’s ‘Squawk BoxBox’ show, Nair noted that both investors and advisors are looking for investment opportunities in Bitcoin-related funds even as the asset struggles to sustain its position above the $30,000 level.
In particular, he noted that people are also tracking in vocal crypto fund managers, presumably to monitor if they have increased their positions in digital assets.
From Nair’s assessment, the search results are also focused on funds that hold a significant amount of different cryptocurrencies, citing an example of Coinbase.
“People are searching for more investments. We’ve seen an uptick from consumers and advisors asking more questions <…> There are more searches around funds that hold Coinbase or funds that are buying more Bitcoin. It appears that there is a bounce-back trade question that’s happening on the platform,” said the CEO.
The searches are in contrast with the current cryptocurrency market sentiments considering that the Fear & Greed Index has hit the lowest point in over two years. As reported by Finbold, by May 17, the index had hit a score of 8 out of 100, the lowest value since March 2020.
The low value, which translates to ‘extreme fear,’ indicates that investors are sceptical of getting involved in the crypto market due to the general uncertainty.
Drivers for interest in Bitcoin funds
Although the cryptocurrency market has remained volatile since the start of the year, Bitcoin and crypto funds, in general, are attractive to investors in such an environment. The funds are more convenient because investors don’t have to buy the actual Bitcoin.
Additionally, investing in products like Bitcoin ETFs handles the risk associated with the crypto market. ETFs safeguard investors from security risks and general price volatility.
Nevertheless, the emergence of the Bitcoin ETF had come with euphoria among investors. Notably, following the SEC’s approval of a Bitcoin ETF last year, Bitcoin shot to an all-time high of almost $67,000.
Despite the cushion offered by Bitcoin funds, the overall market meltdown is a section of the broader pullback from risky assets resulting from rising interest rates, inflation, and continued economic uncertainty.
Watch the full conversation below: