March 23, 2023

Investors Continue to Pull Out of Digital Asset Investment Products Amid Regulatory Uncertainty

The negative sentiment in digital asset investment products has continued for the fourth week in a row, with investors pulling out a total of $17 million. The latest edition of the CoinShares report confirmed the trend, stating that “the poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class.”

Institutional investors are feeling the pressure as the US regulatory agency, the Securities and Exchange Commission (SEC), continues to target crypto entities in the country. While the outflows have been minor this week compared to the figures in the past few weeks, the trend is still concerning for the industry.

According to the fund manager’s report, a majority of the outflows were from Bitcoin, totaling $20 million. On the other hand, short-bitcoin saw inflows for a third week, totaling $1.8 million during the same period. However, the recent inflows failed to translate substantially for short-bitcoin.

The regulatory uncertainty surrounding digital assets has been a major concern for investors, with many worried about the potential impact of new regulations on the industry. While some investors are still bullish on the long-term prospects of digital assets, the short-term outlook remains uncertain.

As the industry continues to grapple with regulatory uncertainty, it remains to be seen how investors will respond in the coming weeks and months. However, it is clear that the negative sentiment is having an impact on digital asset investment products, and the industry will need to find ways to address these concerns if it hopes to attract more investors in the future.

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