July 27, 2024
Dwindling optimism for Bitcoin ETF approval to blame as weekly crypto outflows hit M
Dwindling optimism for Bitcoin ETF approval to blame as weekly crypto outflows hit M

Digital asset investment products saw $55 million in outflows during the week of September 13-19, according to a report from CoinShares.

Previous optimism that a spot-based bitcoin exchange-traded fund was imminently approved has begun to fade as BTC alone was worth $42 million in outflows this week.

Considering its market share, Ethereum products are not faring much better. Ethereum funds saw $9 million in outflows, while Polygon, Litecoin and Polkadot also saw outflows totaling $2 million.

The only cryptocurrencies that saw inflows this week were Ripple and Cardano. The former saw an inflow of $1.2 million, while Cardano saw an inflow of $100,000.

related: Bitcoin ETFs: A Beginner’s Guide to Exchange Traded Funds

Geographically, almost all regions reported experienced outflows. Canada topped the list of losses with $35.9 million in outflows, accounting for the lion’s share. This was followed by Germany and the United States, with outflows of $11 million and $5.5 million, respectively.

Switzerland and Australia managed to report the only inflows, with the Swiss market supporting inflows worth $3.5 million and Australia supporting inflows worth $100,000.

According to CoinShares, the outflow of funds was Driven Due to the lack of action by the SEC to approve a spot Bitcoin ETF:

“We believe this (market move) is a reaction to recent media highlighting that the SEC will not make an immediate decision to allow US spot ETFs.”

Investor speculation surrounding the possible approval of a spot bitcoin ETF has created a lot of optimism about the future of cryptocurrencies. Some experts have even claimed that such approval could be the catalyst for cryptocurrencies to be “moonworthy.”

As Cointelegraph recently reported, research firm Fundstrat believes that if the SEC does begin approving spot-based bitcoin ETFs, the value of bitcoin “could soar to an eye-popping $150,000 by the end of 2024.”