Last week we wrote that crypto funds grew a little again two weeks ago. Then it was revealed that inflation was slowly coming down, which the market apparently saw as favorable for risky assets like cryptocurrencies. But last week, measured funds shrank again.
Bitcoin price is going down for a variety of reasons
This is what CoinShares writes in its weekly research report. Last week, crypto exchange products saw a total of $55 million in capital flight. The reason given by the crypto exchange fund provider is dwindling hopes that the US Securities and Exchange Commission will soon approve a so-called spot ETF for Bitcoin (BTC).
The crypto market fell sharply last week. Ironically, shortly after the crash, CoinShares analyst James Butterfill mentioned that there were more reasons than just pessimism about the SEC. For example, the increasingly weakening economy would also be an important factor, as would the rumor that SpaceX had sold its BTC.
XRP and Cardano funds grew slightly
Unfortunately for the bulls, nearly all exchange-traded products (ETPs) counted by CoinShares saw cash outflows. As usual, Bitcoin made up the lion’s share of the volume, in this case roughly $42.3 million of the $55 million. Ethereum on the exchange shrank by $9 million.
Also stock market products short are down $2.2 million on Bitcoin, suggesting investors aren’t investing just a little bit more bearish but are also not prepared to react to a falling price. The only two featured coins where exchange products saw growth were XRP (+$1.2 million) and Cardano (ADA) at +$0.1 million. Solana (SOL) saw no net outflows, but also saw no growth.
Still, the outflows three weeks ago were much more extreme. Then more than $107 million exited the market, almost double last week’s amount. 70.8 million dollars came from Canada at the time. This country was also the largest source of capital flight last week. $35.9 million left Canada. Germany was second with $11 million.