Short-Bitcoin products gain popularity as clampdown-driven crypto outflow persists

cyptouser7 months agoCryptocurrencies News191

Bearish warning as sell-side pressure persists despite Bitcoin surge – on-chain data shows

Crypto investment products have seen a trend of outflows for five consecutive weeks, as $54 million exited these products in the past week, according to the latest CoinShares weekly report. This extends the total outflow over the last nine weeks to $455 million, underscoring the prevailing bearish sentiment in the market.

US top outflows

CoinShares noted that the United States dominates the outflows, contributing around 77% of these exits due to the seemingly unending regulatory clampdown on crypto-related businesses within the region.

U.S. financial regulatory bodies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have initiated enforcement actions against various crypto entities such as Binance and Coinbase, as well as decentralized finance protocols like Opyn and Deridex.

These regulatory measures have created a challenging environment for crypto companies operating in the United States, as the regulatory landscape remains unclear.

Short-BTC products are ‘most loved’

CoinShares dubbed short-Bitcoin investment products the “most loved,” even though it experienced outflows of $3.8 million in the past week. The company reports that these products have garnered approximately $12 million in inflows for the current month.

Conversely, BTC investment products bore the brunt of last week’s outflows, accounting for 85% of the total at roughly $45 million. Their monthly performance shows a significant negative trend, with withdrawals exceeding $100 million, indicating a consistent exodus of investors.

In a surprising twist, Ethereum, despite its attractive investment opportunities and strong demand for its staking yields, witnessed an outflow of $4.8 million last week. CoinShares had previously categorized this digital asset as the “least loved” among investors.

Despite the prevailing bearish sentiment, select altcoins managed to attract inflows. Solana, Cardano, and XRP recorded inflows of $0.7 million, $0.43 million, and $0.13 million, respectively.

Nonetheless, flows into digital asset products remain positive throughout the year, as it currently stands at $51 million on the year-to-date metric.


The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Binance US shifts to ‘crypto-only’ after dropping USD, MoonPay becomes new on-ramp

Binance US shifts to ‘crypto-only’ after dropping USD, MoonPay becomes new on-ramp

Prompted by regulatory pressures, Binance.US is transitioning to a crypto-only exchange, r...

AI tokens see the lowest weekly trading volume this year

A recent report from data analytics firm Kaiko revealed decreased trading activity for AI-related tokens.

The report analyzed weekly trading volumes for some of the most popular AI-related tokens, such as Fetch.ai (FET), Injective (INJ), Oasis Network (ROSE), Render (RNDR), SingularityNET (AGIX), and The Graph (GRT). According to Kaiko’s findings, these tokens have experienced the lowest weekly trading volume since the beginning of the year.

ai tokens trading volume
Graph showing the weekly trading volume for AI-related tokens from September 2022 to July 2023 (Source: Kaiko)

Data from CryptoSlate also reflects the struggles of the AI token sector to maintain its momentum. Evaluations of the top five AI coins by market cap indicate a relatively flat performance, with these tokens recovering most of their losses from the previous week.

However, despite these price recoveries, it is critical to remember that price is not always an accurate measure of overall performance; trading volume often provides a more telling gauge of a token’s vitality.

AI tokens see the lowest weekly trading volume this year

A recent report from data analytics firm Kaiko revealed decreased trading activity for AI-...

Crypto market maker Wintermute shifts focus to Asia amid Western regulatory turmoil, plans expansion

Crypto market maker Wintermute shifts focus to Asia amid Western regulatory turmoil, plans expansion

Crypto market maker Wintermute is eyeing an expansion into Singapore after co-founder Yoann Turpin r...

Bitcoin sees the second-highest number of new Inscriptions per day

Bitcoin sees the second-highest number of new Inscriptions per day

Bitcoin, the world's most popular cryptocurrency, has been making headlines again. This time, it...

Adaptation and Growth: Bitfinex’s Resilience in the Crypto Revolution

Adaptation and Growth: Bitfinex’s Resilience in the Crypto Revolution

Bitfinex initially emerged in 2012 as a harbinger of change, fueling the evolution of digital tradin...

Kinetix eyes GMX’s path, aims to revolutionize Kava Chain with perpetual swaps

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and leverage trading and it made a big splash in the DeFi community.

If you haven’t heard about GMX, let’s get you up to speed: GMX’s launch on Arbitrum was seen as a major DeFi milestone. Aside from proving Arbitrum as an effective Ethereum L2 scaling solution, GMX stood out for two big reasons:

  1. The first DEX and perpetual market to launch on the Arbitrum ecosystem.

  2. A shared liquidity pool system minimizes price impact on trades of all sizes without affecting the market price.

Within a month of launch, GMX grew its TVL to over $30 million, averaging ~$1.4 million in daily trades. GMX has evolved into a liquidity mining program, an NFT marketplace, and a yield farming platform. Its ongoing growth puts it at TVL of over $450 million and boasts a 24-hour trading volume of $1 million at the time of writing.

GMX’s growth and adoption also accrued value to the GMX token. The GMX token market price on Sept 13th of 2021 was $14.74. One month later, it was $22.33. A year later, it is $46.27, and at the time of writing, it sits at $36.66 — a more than 200% price appreciation since launch.

Looking back, it’s safe to say that GMX’s launch on Arbitrum was a great success. Demand for a decentralized perpetual market on Arbitrum was and still is – high.

But why did a perpetual market and shared liquidity pool system impact Arbitrum’s growth? And what does this have to do with Kinetix and Kava Chain?

Perpetual Propulsion

The evolution of DEXs and derivatives markets (like perpetual swaps) in crypto presents builders with novel tools to push DeFi forward and provide users with incentives for early adoption.

Kinetix Finance, a state-of-the-art v3 perpetual DEX, brings the same potential to Kava Chain that GMX brought to Arbitrum. The flywheel effect works like this: the launch of the first DEX and perpetual market protocol on an ecosystem creates positive market sentiment, which accelerates liquidity growth and user activity on the protocol and, by extension, its ecosystem.

GMX offered Arbitrum users the flexibility of perpetual swaps without an expiry, so it drew a larger pool of seasoned and novice traders into the ecosystem, contributing to more liquidity and activity.

This led to a surge in the TVL, reflecting a heightened capital allocation within the Arbitrum ecosystem. The non-expiring nature of GMX’s perpetual contracts stimulated higher trading volumes among these new users, who could adjust their positions without being bound by contract end dates.

This heightened activity enhanced the overall liquidity of Arbitrum and incentivized more people to onboard and participate in the Arbitrum ecosystem.

So why is Kinetix Finance ripe to experience the very same flywheel effect?

The Kinetix v3 DEX & Perpetual Market

The Kinetix team is building from their past successful experience with Quickswap, the largest DEX on Polygon for over 3 years, which at its peak had ~1.5 billion in TVL and ~1 billion in 24h trading volume.

For their next venture, they’ve decided to build on Kava Chain, a layer-1 blockchain that combines the speed and interoperability of Cosmos with the developer power of 

Kinetix eyes GMX’s path, aims to revolutionize Kava Chain with perpetual swaps

GMX launched in early September 2021 as a decentralized perpetual exchange offering swaps and levera...