- August 23, 2023
- Posted by: [email protected]
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According to CoinShares, digital asset investment products saw $55 million in withdrawals over the week of September 13-19. The decreasing euphoria surrounding the expected approval of a spot-based Bitcoin exchange-traded fund (ETF) contributed considerably to these outflows, with BTC alone seeing $42 million in outflows.
Ethereum products also faced challenges, with $9 million in outflows, while outflows for Polygon, Litecoin, and Polkadot combined amounted to $2 million. Notably, Ripple and Cardano were the only cryptocurrencies to attract inflows for the week, with Ripple receiving $1.2 million and Cardano securing $100,000.
Geographically, most regions reported outflows, with Canada leading the losses at $35.9 million, followed by Germany with $11 million, and the United States with $5.5 million in outflows. Switzerland and Australia bucked the trend, reporting inflows of $3.5 million and $100,000, respectively.
The primary driver behind the outflows was the perceived lack of progress by the U.S. Securities and Exchange Commission (SEC) in approving a spot-based Bitcoin ETF. CoinShares noted that recent media reports highlighting the absence of an imminent decision by the SEC regarding a U.S. spot-based ETF contributed to this market movement.
The potential approval of a spot-based Bitcoin ETF has generated substantial investor speculation, with some experts suggesting it could be a significant catalyst for the cryptocurrency market. According to Research firm Fundstrat, if the SEC begins approving spot-based Bitcoin ETFs, the coin value of Bitcoin could surge beyond $150,000 by the end of 2024.
