CoinShares released data this past Monday that shows a steady outflow of Bitcoin-related investment products and funds.
According to data from CoinShares, a trusted digital asset manager, Bitcoin-related investment products and funds have seen outflows for five consecutive weeks. The data comes at a time when U.S. regulators are planning to change cryptocurrency regulations.
The potential shakeup of industry operations is making investors and others in the industry skeptical of what is to come.
The total Bitcoin
outflow for the week of August 6 was $33 million, compared to just under $20 million the previous week. Nevertheless, the data still shows a significant inflow of $4.2 billion for the world’s most prominent cryptocurrency.
As for the total outflows from the cryptocurrency industry, it amounted to $26 million, according to CoinShares. However, the digital asset manager mentioned that the outflows were lower than in May and June.
last week. The update included an ether “burn” feature that puts tokens outside of the utility’s circulation.
According to Ultrasound.Money, which tracks ether burning, it is estimated that nearly $60 million worth of ether was “burned” after the update.
Future cryptocurrency regulations worry the industry
It’s safe to say that the entire global cryptocurrency community is on the brink of danger, as U.S. regulators are considering a new bill
that could drastically change the future of the industry.
Initially, the bill contained vague wording that would have grouped almost any person, let alone a large company, working in the cryptocurrency sector into one tax bracket. This meant that even people who, perhaps, gave a friend some bitcoin or bought consumer goods using cryptocurrencies would have to report the transaction to the IRS.
Until the amendments were presented, the entire industry cried foul. Certainly, the announcement created additional hesitation among investors both veterans of the space and those with less experience.
The United States is a global financial leader, and its moves to regulate cryptocurrencies
are causing a lot of excitement. It remains to be seen how the industry will react to the upcoming crypto regulations.
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