CoinShares chief strategy officer (CSO) Meltem Demirors is issuing a warning to the crypto markets after a summer of relatively muted volatility.
In a new Bloomberg interview, Demirors says there is a high degree of uncertainty in the crypto industry and this is scaring off several market participants.
“Sentiment is expressed as flows in the market and when we look at flows I jokingly call it the summer of apathy – the summer we just had – despite all this great news we saw flows into crypto structured products and a pop in Bitcoin when we saw the BlackRock [spot Bitcoin exchange-traded fund (ETF) application] news.
But in the last month we have seen an outflow of $300 million. Last week there was 70% less trading volume in listed crypto products, and we are also down 30% in trading volume on the spot and derivatives side.
That’s a summer of apathy with all this uncertainty… There’s just a lot of uncertainty and what we’re seeing now is that the summer of apathy has the potential to turn into a winter of discontent as we leave investors, traders, market makers, sitting on the sidelines.”
According to the CoinShares CSO, there is a consensus among both Democrats and Republicans that US lawmakers should provide regulatory certainty to the crypto industry.
“I think both sides agree, and where we see a lot of agreement is that something needs to be done. I have been active in this industry for almost ten years. I live in the United States. I have built several companies dealing with crypto in the United States. I don’t want to have to consider moving just because we can’t get our act together on policy.
It’s very clear that we need something coherent, and that has to come from Congress, because it’s clear that the alphabet soup of agencies simply won’t agree.
And again, I’m a little scared to see how this is all going to be resolved because right now there are so many lawsuits, so many cases, so many different precedents that are being set, that it’s really going to have to be a bipartisan effort where everyone comes together to get something done.”
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