CoinShares released this Monday (9) data that show consistent losses in products and investment funds in Bitcoin (BTC).
According to data from CoinShares, a trusted manager of digital assets, Bitcoin-related investment products and funds posted losses for five consecutive weeks. The data comes at a time when the controversial US bill affecting cryptocurrencies has just been passed.
The turbulent uncertainties surrounding the crypto market have left investors and other industry users skeptical of what is to come.
$33 million less Bitcoin
Total Bitcoin outflows last week totaled $33 million, compared to just under $20 million seen the week before. However, the data still shows significant inflows of $4.2 billion for the world’s most influential cryptocurrency.
As for the outputs of the cryptocurrency industry in total, they amounted to US$ 26 million, according to CoinShares. However, the digital asset manager mentioned that outflows are lower than seen in May and June.
Additional data showed a drop in ETH outflows from $9m last week to $2.8m. This is due to the hard fork London that took place on the blockchain Ethereum last week. The update included the ETH burning feature, which puts tokens out of usable circulation.
It is estimated that nearly $60 million in ETH was “burned” after the upgrade, according to Ultrasound.Money, which tracks the volume of burnt cryptocurrencies.
Regulatory Perspectives Concern Industry
It’s safe to say that the entire global crypto community is wary as US regulators discuss a new bill that could drastically change the industry’s future.
Initially, the project contained an obscure language that would group almost any individual, let alone a large company, working in the cryptocurrency industry into a tax bracket. This meant that even individuals who, perhaps, had given a Bitcoin to a friend or purchased a consumer good using digital coins, would have to inform the US Revenue about the transaction.
Until the amendments appeared on the table, the entire industry was asking for a reaction. Certainly, the announcement caused additional hesitation from veteran investors and those with less experience in cryptocurrencies.
The US is considered the global financial leader, and its regulatory moves on cryptocurrencies can be copied in other countries. It is necessary to analyze how the crypto market will respond to the rules to come.
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