CoinShares released data this past Monday which shows a consistent outflow of Bitcoin investment products and funds.
According to data from CoinShares, a trusted digital asset manager, investment products and funds related to bitcoin logged outflows for five consecutive weeks. The data comes as industry-changing regulations sit on the desks of regulators in the U.S.
The potential upheaval of industry operations has investors and others functioning within the space skeptical of what is to come.
Bitcoin’s total outflows for the week of Aug. 6, totaled to $33 million, compared to a little less than $20 million the week prior. Nonetheless, the data still shows significant inflows of $4.2 billion for the world’s most prominent cryptocurrency.
As for the outflows of the crypto industry in total, it added up to $26 million according to CoinShares. However, the digital asset manager mentioned the outflows to be less than May and June.
Additional data showed a decrease in ether outflows from $9 million last week to $2.8 million. This follows the London hard forks which occurred on the Ethereum blockchain last week. The upgrade included the feature of ‘burning’ ether, which puts tokens outside the usable circulation.
It’s estimated that almost $60 million worth of ether has been ‘burned’ post-upgrade according to Ultrasound.Money, which tracks ether burns.
Prospective crypto regulations worry the industry
Initially the bill contained murky language, which would group almost any individual, let alone a large firm, working within the crypto sector into a tax bracket. This meant even individuals who, perhaps gave a friend some bitcoin or purchased a consumer good using crypto, would have to report to the IRS on said transaction.
Until amendments appeared on the table, the entire industry cried out in backlash. Certainly, the announcement caused additional hesitation from investors both veteran to the space and those with less crypto experience.
The U.S. is a global financial leader, it’s moves in the crypto regulatory landscape make waves. It is to been seen how the industry responds to the upcoming crypto rules.
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