Interest in Market is Weakening, Capital Outflow from Crypto Funds Shows: Bitfinex
According to data from Bitfinex, institutional capital has withdrawn from crypto funds since March, signaling weakening investor interest in cryptocurrency markets.
This downturn in enthusiasm is likely the result of the Securities and Exchange Commission (SEC) prolonging the evaluation period for applications for spot Bitcoin ETFs.
A CoinShares report showed that funds withdrew over $179 million since mid-August, with $149 million coming from BTC funds.
The study also highlighted that assets aimed at reducing cryptocurrency risk have been popular, yet trading volume plummeted by 16% last week according to their estimates.
While there was a slight capital injection into LTC and XRP funds, outflows have been continuous for 18 consecutive weeks.
Bitfinex concluded that capital outflow suggests that it will be a long wait before another bullish trend emerges and any resolution of the current uncertainty surrounding ETFs would renew investor confidence in the crypto market.
