Key Points:
This shift in investor sentiment is believed to be driven by recent media coverage emphasizing the delayed decision of the US Securities & Exchange Commission (SEC) regarding the approval of a US spot-based ETF.
The market’s subdued trading volumes due to seasonal factors have left cryptocurrency prices exposed to substantial market moves.
The turmoil of the past week contributed to a 10% decline in the total assets under management (AuM), which concluded at $32.3 billion by the week’s end.
This widespread withdrawal of funds affected various product providers, though Canada and Germany were hit the hardest, with outflows of $36 million and $11 million, respectively. Switzerland, in contrast, experienced minor inflows totaling $3.5 million.
Notably, Bitcoin faced a net outflow of $42 million, marking a reversal from the inflows observed in the preceding week.
Similarly, investments focused on shorting Bitcoin encountered outflows for the 17th consecutive week, with the exception of $2,000 in inflows, leading to a total of $2.2 million in net outflows.
The trend of reduced investor confidence extended beyond Bitcoin, encompassing a range of alternative cryptocurrencies.
Ethereum recorded net outflows of $9 million, while other altcoins such as Polygon, Litecoin, and Polkadot experienced withdrawals of $0.9 million, $0.6 million, and $0.5 million, respectively.
The negative sentiment also impacted blockchain equities, witnessing $6 million in outflows during the same period. This dynamic market activity underscores the cautious stance of investors as they navigate regulatory uncertainties and market fluctuations, seeking stable ground amid the evolving cryptocurrency landscape.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Victoria, Seychelles, 22nd May 2024, Chainwire
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