As concerns mount over the potential reluctance of the US Securities and Exchange Commission (SEC) to grant approval for a spot Bitcoin exchange-traded fund (ETF), investors within cryptocurrency-backed investment funds have withdrawn an estimated $55 million from the market.
According to the most recent Digital Asset Fund Flows report from cryptocurrency research and investing business CoinShares, when simply looking at funds backed by Bitcoin, the outflows for the previous week totaled $42 million, which was the opposite of the $27 million in inflows witnessed the week before.
The value of short-Bitcoin funds, which increase in value as the price of Bitcoin decreases, decreased by $2.2 million during the week.
The withdrawals from short-Bitcoin funds represented the 17th week in a row that the bearish fund category has experienced withdrawals.
Ethereum-backed funds, which experienced outflows of $9 million for the week, were the other major fund category to experience changes.
Despite a lot of negative press around the exchange and a weekly decline in the price of the BNB token of cryptocurrency exchange Binance, it is interesting to note that funds backed by the BNB token witnessed neither inflows nor outflows during the week. CoinShares commented on the flows in the report, stating that they are probably related to media stories concerning the SEC’s resistance to approving a spot Bitcoin ETF in the US.
According to the media article, CoinShares claimed that the current narrative is that an SEC decision regarding a spot ETF is “not imminent.”
Investor mood has gotten worse as a result of this narrative, crypto trading volumes that are still “well below average,” and a panic in the markets last week, according to CoinShares research.
It was also mentioned that most fund providers have seen outflows, but they were primarily concentrated in Canada and Germany on a regional level.
The only two nations to defy the pattern for the week were Switzerland and Australia, which both saw inflows of $3.5 million and $0.1 million, respectively.