Bitcoin, the leading cryptocurrency, experienced a marginal decline on Tuesday amidst persisting regulatory uncertainties and ongoing outflows from investment products, notably exchange-traded funds (ETFs).
Over the past 24 hours, Bitcoin slipped by 0.2%, settling at $63,579.4 as of 08:30 ET (12:30 GMT).
This dip in sentiment toward cryptocurrencies was exacerbated by recent revelations that less than 10% of overall stablecoin transactions, crucial for crypto transactions, were deemed organic or from genuine users. Questions arose regarding the true extent of retail demand for cryptocurrencies, especially with stablecoin operators, notably Tether, consistently recording market capitalization gains.
Adding to the market’s woes, trading platform Robinhood Markets Inc (NASDAQ: HOOD) announced potential regulatory scrutiny from the Securities and Exchange Commission (SEC) over its handling of crypto tokens. Meanwhile, the SEC’s postponement of a key decision regarding ETFs further contributed to the negative sentiment.
The sustained outflows from crypto investment products underscored the prevailing pessimism in the space. According to data from CoinShares, crypto investment products witnessed a third consecutive week of capital outflows, totaling $435 million, with Bitcoin products alone witnessing outflows of $423 million.
While outflows from Grayscale’s Bitcoin ETF constituted a significant portion of the total, other Bitcoin ETFs also experienced a notable slowdown in capital inflows.
The lack of immediate catalysts for the crypto markets, coupled with Bitcoin’s subdued performance following its halving event and subsequent record highs in March, contributed to the tepid investor sentiment.
Ethereum Faces Pressure as SEC Delays Decision on ETFs
In tandem with Bitcoin’s decline, major altcoin Ethereum saw a 3.4% drop, reaching $3,069.52, following the SEC’s decision to postpone its verdict on spot ETFs tracking the altcoin for U.S. markets. The regulatory agency is now expected to reach a decision by early July, with ongoing investigations into Ethereum’s security status likely to impact future ETF applications.
While Ethereum faced downward pressure, other altcoins experienced mixed movements amid speculation surrounding potential U.S. interest rate cuts. XRP managed a modest 0.3% increase, whereas Solana surged by 3.8%.
Revolut Introduces Dedicated Crypto Exchange for Professional Traders
London-based digital bank Revolut has launched Revolut X, a dedicated cryptocurrency exchange tailored specifically for professional traders. This move follows Revolut’s longstanding provision of crypto buying and selling services within its app.
Revolut X aims to attract traders with its competitive fee structure, offering no charges for trade makers and a nominal fee of 0.09% for takers. While several banks offer cryptocurrency trading services to their customers, Revolut stands out as one of the first to establish a dedicated exchange platform solely for this purpose.
