The month of August was characterised by strong fluctuations, as evidenced by the sharp drop in ETF investments in the last week.
The week that just ended marked a negative step for investments in cryptocurrency-related financial assets. Indeed, the last seven days of August saw the thwarting of growth that had been noticeable, and important, throughout the entire month: that of confidence in traditional crypto-related products, such as BTC-based ETFs or Ether.
A Hole of 305 Million Dollars
The summer month par excellence had put on record consistent growth in investments in Exchange Traded Funds. Until its penultimate week, we had seen a more than positive investment balance of over $360 million. The complications of the last seven days, however, which have created problems for the entire crypto sector, have also affected this segment, leading to a loss of 305 million. The monthly balance remains positive, however, at around 58 million, but this is a pittance compared to what the total might have been without the last period.
The swings characterised the opening and closing of August. Monday 5 was even referred to as Black Monday, due to the overall and specific devaluation of all major cryptocurrencies traded; then there was a consistent recovery and, finally, a new drop in the volume of trades and the value of securities traded.
Will September be the Month of the ETF Rebound?
September, the month of new opportunities, opened with a substantial cancellation of all the accumulations that had characterised the ETFs' performance until the end of the second third of August. Obviously, Bitcoin-based funds, which represent the vast majority of the specific market, suffered the most, as they have been tradable for much longer than Ether-related funds.
The situation may be less worrying than it appears, since - it has to be said - August was also basically a month of stagnation for cryptocurrency trading outside of stock exchange channels and, therefore, it is a systemic slowdown and not just a crisis in the segment of these financial products.
September could be a good opportunity to shake off the summer torpor and revive the entire sector. After all, the value of BTC is falling and this could push investors into action. Historically, however, August-September is never the best two months for the queen of cryptocurrencies (indeed, it is the worst: not by chance, the BTC's August balance sheet has been in the red for 10 years, except for a couple of years), so it may be necessary to wait until October.
ETF and Short-Term Scenarios
The short-term phase looks delicate. The rebound attempt could be supported by the statement of the FED, the US central bank, which admitted through its president Jerome Powell that it might soon cut interest rates. However, news like this tends to be short-lived, especially if it is not followed by facts. Even a flash fire, however, burns something, and could be a good boost for the sector. The rebound attempt will most likely start at the end of this week and we will see if it will be sustained in the coming week.
If you want to know the latest ETF dynamics and other interesting news from the Web3 and cryptocurrency world, subscribe to the SpazioCrypto Newsletter.
The week that just ended marked a negative step for investments in cryptocurrency-related financial assets. Indeed, the last seven days of August saw the thwarting of growth that had been noticeable, and important, throughout the entire month: that of confidence in traditional crypto-related products, such as BTC-based ETFs or Ether.
A Hole of 305 Million Dollars
The summer month par excellence had put on record consistent growth in investments in Exchange Traded Funds. Until its penultimate week, we had seen a more than positive investment balance of over $360 million. The complications of the last seven days, however, which have created problems for the entire crypto sector, have also affected this segment, leading to a loss of 305 million. The monthly balance remains positive, however, at around 58 million, but this is a pittance compared to what the total might have been without the last period.
The swings characterised the opening and closing of August. Monday 5 was even referred to as Black Monday, due to the overall and specific devaluation of all major cryptocurrencies traded; then there was a consistent recovery and, finally, a new drop in the volume of trades and the value of securities traded.
Will September be the Month of the ETF Rebound?
September, the month of new opportunities, opened with a substantial cancellation of all the accumulations that had characterised the ETFs' performance until the end of the second third of August. Obviously, Bitcoin-based funds, which represent the vast majority of the specific market, suffered the most, as they have been tradable for much longer than Ether-related funds.
The situation may be less worrying than it appears, since - it has to be said - August was also basically a month of stagnation for cryptocurrency trading outside of stock exchange channels and, therefore, it is a systemic slowdown and not just a crisis in the segment of these financial products.
September could be a good opportunity to shake off the summer torpor and revive the entire sector. After all, the value of BTC is falling and this could push investors into action. Historically, however, August-September is never the best two months for the queen of cryptocurrencies (indeed, it is the worst: not by chance, the BTC's August balance sheet has been in the red for 10 years, except for a couple of years), so it may be necessary to wait until October.
ETF and Short-Term Scenarios
The short-term phase looks delicate. The rebound attempt could be supported by the statement of the FED, the US central bank, which admitted through its president Jerome Powell that it might soon cut interest rates. However, news like this tends to be short-lived, especially if it is not followed by facts. Even a flash fire, however, burns something, and could be a good boost for the sector. The rebound attempt will most likely start at the end of this week and we will see if it will be sustained in the coming week.
If you want to know the latest ETF dynamics and other interesting news from the Web3 and cryptocurrency world, subscribe to the SpazioCrypto Newsletter.
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