According to a report by crypto data analysis firm CoinShares, digital asset investment products experienced a $55 million outflow in the week of August 13. Despite the positive news about ETF approval circulating in the market, the absence of this step by the SEC has led investors in the crypto sector to think negatively again, resulting in losses in crypto funds.
Waiting for Good News from the SEC
The optimism surrounding the approval of a Bitcoin exchange-traded fund (ETF) based on the assumption that it is getting closer has started to give way to a pessimistic atmosphere with $42 million worth of outflows from the week’s funds coming only from BTC. Analysts attributing this situation to the absence of the expected positive news from the SEC emphasized that the market will regain an optimistic atmosphere with a positive step.
Ethereum products did not perform much better considering their market share. While there was a $9 million outflow in Ethereum funds, there were also outflows of $2 million in Polygon, Litecoin, and Polkadot. The only cryptocurrencies that experienced inflows during the week were Ripple’s XRP and Cardano. Ripple saw an inflow of $1.2 million, while Cardano saw a fund inflow of $100,000.
The Biggest Loss Came from Canada
Geographically, outflows were observed in almost every reported region. Canada took the first place in the list of losses with an outflow of $35.9 million. Germany and the United States followed with outflows of $11 million and $5.5 million, respectively.
In contrast to the outflows, fund inflows were reported in Switzerland and Australia. The Swiss market supported a fund inflow of $3.5 million, while Australia saw a fund inflow of $100,000. According to CoinShares, the outflows were due to the lack of movement by the U.S. Securities and Exchange Commission (SEC) in approving a spot Bitcoin ETF:
“We believe this market movement is a reaction to the media emphasizing that the U.S. Securities and Exchange Commission is not close to approving a spot Bitcoin ETF.”
The investor speculation surrounding the potential approval of a spot Bitcoin ETF has led to a great deal of optimism for the future of the cryptocurrency. Some experts even claim that such an approval could be a “moon-worthy” catalyst for crypto. Crypto research platform Fundstrat believes that if the SEC starts approving spot Bitcoin ETFs, the value of Bitcoin will exceed $150,000 by the end of 2024.
