Disappointing Outflows in Digital Assets
This past week saw digital asset investment products face significant turbulence, registering a staggering $55 million in outflows as of September 13. The sky was once blue with optimism over the impending approval of a spot-based Bitcoin ETF, but that excitement has deflated faster than a birthday balloon after a party.
Bitcoin Takes the Brunt of the Outflows
Out of the total outflows, Bitcoin took the hardest hit, accounting for $42 million. It’s as if investors decided to play a game of “musical chairs” but forgot to stop the music.
The Ethereum Dilemma
Ethereum products didn’t have a picnic either. Ether funds lost $9 million, while various altcoins such as Polygon, Litecoin, and Polkadot combined saw outflows of $2 million. Talk about a party foul!
Who’s Winning? Sort Of…
In a surprising turn, only a couple of cryptocurrencies enjoyed some positive vibes last week. Ripple’s XRP garnered $1.2 million in inflows, while Cardano barely squeaked by with $100,000. It’s like throwing a party and inviting only a handful of friends who actually show up.
Geographical Breakdown of the Outflows
Geographically, almost every area reported outflows. Canada led the charge with $35.9 million in outflows, showing that the moose is not the only thing that can make a quick escape from Canadian soil. Following Canada, Germany ($11 million) and the U.S. ($5.5 million) also reported losses. Meanwhile, Switzerland and Australia are like that one friend who always brings snacks to the party, reporting inflows of $3.5 million and $100,000, respectively.
The ETF Speculation Game Continues
The recent outflows have been largely attributed to investor concerns over the stagnation at the U.S. Securities and Exchange Commission regarding the spot Bitcoin ETF approvals. According to CoinShares’ research, this reaction is tied to
“recent media highlighting that a decision by the US Securities & Exchange Commission in allowing a US spot-based ETF is not imminent.”
Experts still hold on to hope that a spot-based Bitcoin ETF approval could be a game changer for the cryptocurrency market. Some even predict that Bitcoin could reach a jaw-dropping value of over $150,000 by the end of 2024 should the ETF be authorized. It seems like we’re all just waiting for that green light before the party really begins!
