As the week of September 13-19 concluded, digital asset investment products experienced $55 million in outflows, as reported by CoinShares. The once prevalent anticipation for the imminent Bitcoin ETF approval seems to be waning, with Bitcoin accounting for $42 million of the week’s outflows.
Disappointing Week for Cryptocurrency Funds
A noticeable downturn was seen in the investment inflow into digital assets. The outflows were not confined to Bitcoin alone. Ethereum funds also faced a setback, witnessing $9 million in outflows. Other cryptocurrencies such as Polygon, Litecoin, and Polkadot didn’t fare well either, registering a combined outflow of $2 million.
On the flip side, Ripple and Cardano emerged as the only cryptocurrencies to record inflows for the week. Ripple saw an inflow of $1.2 million, while Cardano registered a modest inflow of $100,000.
Geographical Distribution of Outflows
From a geographical perspective, the outflows were widespread. Canada topped the chart with outflows amounting to $35.9 million. Germany and the U.S. followed with $11 million and $5.5 million in outflows respectively. Interestingly, Switzerland and Australia were the only regions to report inflows, with the Swiss market recording $3.5 million in inflows and Australia noting an inflow of $100,000.
Root Cause of the Outflows
According to CoinShares, the outflows can be attributed to the Securities and Exchange Commission’s lack of progress towards the Bitcoin ETF approval. Investor speculation around the potential approval had previously led to a surge in optimism for the future of cryptocurrency. Some experts even posited that such an approval could be a major catalyst for a cryptocurrency boom.
Despite the recent downturn, research boutique Fundstrat remains optimistic. They predict that the value of Bitcoin will skyrocket past a staggering $150,000 by the end of 2024, provided the SEC starts approving Bitcoin ETFs.
For those interested in staying updated on these developments, the cryptoview.io application provides a comprehensive view of the cryptocurrency market. It’s a handy tool for those wanting to keep a close eye on the implications of the Bitcoin ETF approval process.
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