Outflows from Bitcoin and Ethereum
Digital asset investment products experienced $55 million in outflows for the week of September 13-19, according to a report from CoinShares. The optimism surrounding the anticipated approval of a spot-based Bitcoin exchange-traded fund (ETF) has started to dissipate, with $42 million worth of outflows coming from Bitcoin alone.
Ethereum products also saw a decline, with $9 million in outflows. Other cryptocurrencies such as Polygon, Litecoin, and Polkadot also experienced outflows, totaling a combined $2 million.
Inflows for Ripple and Cardano
On the other hand, Ripple and Cardano were the only cryptocurrencies to experience inflows during the week. Ripple saw $1.2 million in inflows, while Cardano pulled in a modest $100,000.
Geographical Outflow Patterns
Outflows were reported across various territories, with Canada leading the losses at $35.9 million. Germany and the U.S. followed with $11 million and $5.5 million in outflows, respectively.
However, Switzerland and Australia managed to report inflows. The Swiss market supported $3.5 million worth of inflows, while Australia saw $100,000.
Lack of Movement on Bitcoin ETF Approval
CoinShares attributes the outflows to the lack of progress from the U.S. Securities and Exchange Commission (SEC) regarding the approval of a spot Bitcoin ETF. The recent media highlighting the indefinite timeline for approval has caused market movement and uncertainty.
Investors have been speculating about the potential approval of a spot-based Bitcoin ETF, with some experts claiming that it could be a significant catalyst for the future of cryptocurrency. Research boutique Fundstrat even predicts that the value of Bitcoin could surge past $150,000 by the end of 2024 if the SEC starts approving such ETFs.
