Recent trends in the cryptocurrency industry have seen a stark reduction in investments for Bitcoin exchange-traded funds (ETFs) and legislative concerns over the approval of new crypto ETFs. A significant 80% drop in net inflows for Bitcoin ETFs was recorded, with a shift in investor sentiment due to market volatility and regulatory scrutiny. Senators in the United States have petitioned the Securities and Exchange Commission, cautioning against further approvals of crypto ETFs, which may pose risks to investors. Moreover, a UK court decision has dismissed Craig Wright’s claims of being Bitcoin’s founder, Satoshi Nakamoto.
ETF Inflows Hit a Low Point
A notable downturn in investor interest for Bitcoin ETFs manifested on March 14th, with inflows plummeting to $132 million, an 80% dip from the previous day. This drop contributed to the second successive day of decline in the market. The overall ETF fund flows saw a decrease, with the Grayscale Bitcoin Trust ETF experiencing an outflow of $257 million, even though other funds like VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund reported modest inflows. Market analysts attribute the cautious investor approach to the current market volatility and anticipation of federal monetary policy outcomes.
Senatorial Warnings on Crypto ETFs
United States Senators have expressed concerns over the potential approval of additional crypto ETFs. Democratic Senators Jack Reed and Laphonza Butler emphasized the exposure to manipulation and fraud that investors might face if the SEC were to sanction more crypto ETFs. The senators’ letter highlighted the risk of reference to thinly traded cryptocurrencies and their vulnerability to market schemes. Meanwhile, a Coinbase executive countered the senators’ claims by suggesting the availability of high-quality market data for cryptocurrencies.
UK Court Rules Against Craig Wright’s Claim
In the United Kingdom, a court ruling has determined that Craig Wright is not the creator of Bitcoin, Satoshi Nakamoto, contrary to Wright’s assertions since 2016. The decision came as a result of a lawsuit initiated by the Crypto Open Patent Alliance against Wright, where the court found Wright to have fabricated evidence. COPA, consisting of leading industry members like Coinbase and Kraken, aims to foster the growth and innovation of cryptocurrency technologies by eliminating patents as an obstacle.