Crypto Exchange-Traded Products Experience $455 Million Outflows, Reflecting Negative Sentiment
Summary:
Investors have withdrawn $455 million from crypto exchange-traded products (ETPs) over the past nine weeks, indicating negative sentiment towards cryptocurrencies. Bitcoin ETPs saw the largest outflows, accounting for 85% of the total. Despite this, some altcoin ETPs, including Solana, Cardano, and XRP, saw net inflows. The United States was responsible for 77% of the outflows. Regulatory barriers continue to hinder the approval of a Bitcoin exchange-traded fund (ETF) in the US.
Over the past nine weeks, investors have taken out a total of $455 million from crypto exchange-traded products (ETPs), signaling a negative sentiment towards cryptocurrencies, according to a report by CoinShares. Last week alone, outflows reached $54 million, making it the eighth out of the past nine weeks with net outflows. The majority of these outflows were from Bitcoin (BTC) ETPs, accounting for 85% of the total. Ether (ETH) ETPs also experienced significant outflows of around $5 million last week. However, there were a few exceptions as Solana (SOL), Cardano (ADA), and XRP (XRP) ETPs saw net inflows of $700,000, $430,000, and $130,000 respectively. The United States led the way in terms of geographical origin for these outflows, accounting for 77% of the total, while Germany, Canada, and Sweden also contributed to a significant portion of the outflows. Despite the popularity of crypto ETPs as an accessible investment vehicle for traditional investors, the approval of a Bitcoin exchange-traded fund (ETF) in the United States has been hindered by regulatory and legal challenges. In March, the Securities and Exchange Commission (SEC) rejected VanEck's proposal for a Bitcoin Trust, and more recently, a federal appeals court ruled against the SEC's denial of a Bitcoin ETP proposal by Grayscale, deeming it "arbitrary and capricious.
Published At
9/18/2023 5:57:01 PM
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