• Data from CryptoSlate shows a stark contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends.
• The Bitcoin SFV has oscillated relatively uniformly between 0.2 and 0.4 since January 2020, but has broken out of this range to peak at just under 0.7 this week.
• This suggests that retail traders are piling into Bitcoin at a rate greater than derivatives traders.
The recent analysis of data from CryptoSlate suggests that retail traders are increasingly piling into Bitcoin at a greater rate than derivatives traders. This is evidenced by the observation of the Bitcoin Spot to Futures Volume (SFV). SFV is a metric that looks at the ratio of spot volume against futures volume for a particular cryptocurrency. Spot volume refers to the current quote for the immediate purchase of the cryptocurrency and forms the basis for all derivatives markets; strong spot volume equates to healthy accumulation, leading to sustainable price growth.
Since January 2020, the Bitcoin SFV has oscillated relatively uniformly between 0.2 and 0.4. However, the SFV has recently broken out of this range, climbing higher to peak at just under 0.7 this week. This suggests that retail traders are piling into Bitcoin at a rate greater than derivatives traders. In contrast, the Ethereum SFV print shows a more haphazard pattern, with the ratio of the spot to futures volume recording lower lows since May 2022.
The rising SFV ratio for Bitcoin indicates that retail investors are continuing to accumulate the cryptocurrency in anticipation of further price growth. This could be seen as a sign of confidence in the future of Bitcoin and may be a key factor in driving its price above the $20,000 mark. It will be interesting to observe if the trend continues, as well as to see if it is enough to propel the price of Bitcoin to further new heights.
• Coinshares, the largest digital asset investment group in Europe, believes there is only „minor negative sentiment“ in the crypto markets.
• Bitcoin is threatening to touch $18,000 for the first time since mid-December, while outflows from global crypto funds have dropped to $9.7 million.
• Coinshares analysis reveals that there has been persistent outflows from crypto funds over the past six months, but the inflows and outflows have canceled out to remain relatively flat.
Crypto markets have been experiencing a bear market for most of the past year, but there are signs that sentiment is starting to improve. Europe’s largest digital asset investment group, Coinshares, believes that there is only „minor negative sentiment“ in the crypto markets and Bitcoin is threatening to touch $18,000 for the first time since mid-December.
Recent analysis from Coinshares indicates that outflows from global crypto funds are starting to wane. Bitcoin saw just $6.5 million in outflows, indicating that sentiment „remains negative,“ but only just. Overall, digital asset investment products saw outflows totaling US$9.7m, which highlights continued mild negative sentiment that has persisted for the last 3 weeks.
The chart below showcases the persistent outflows from crypto funds, consistent over the past six months, with only five weeks of inflows throughout the period. However, outflows have failed to amass any substantial volume, as figures suggest inflows and outflows canceled out to remain reasonably flat. The largest weekly outflow over the past 52-week period reached roughly $175 million, while the most significant inflow hit around $350 million. Eighteen weeks of outflows compare to seventeen weeks of inflows throughout a challenging bear market across the past 52 weeks.
Overall, there are positive signs emerging from the crypto markets. Coinshares‘ analysis shows that outflows have dropped to $9.7 million and Bitcoin is threatening to reach $18,000, indicating that the bear market may be coming to an end. It will be interesting to see if the positive sentiment continues in the coming weeks and months.
– The Securities and Exchange Commission (SEC) of Thailand is investigating Zipmex to ascertain if its earn products breached regulatory rules.
– The SEC has sent a letter to Zipmex on Dec. 28 stating that the ZipUp and ZipUP+ products were in violation of the digital-asset business rules.
– The SEC has urged Zipmex to come forward to clarify its status on or before Jan. 12.
The Securities and Exchange Commission (SEC) of Thailand is currently investigating Zipmex to determine whether its earn products violated regulatory rules. The investigation began after the SEC sent a letter to Zipmex on December 28th, 2020, which stated that their ZipUp and ZipUp+ products did not comply with digital asset business regulations.
The SEC believes that Zipmex may have been operating as a digital asset fund manager without the proper authorization. This is concerning, as Zipmex is not licensed to do so. To rectify this, the SEC has instructed Zipmex to explain their status before January 12th, 2021.
This investigation is taking place only a month after news broke that V Ventures had agreed to acquire Zipmex for $100 million. However, this deal may be in jeopardy if Zipmex is found to be in violation of any regulatory laws.
In July of 2022, Zipmex shut down withdrawal services due to insolvency concerns. This prompted the SEC to investigate further and request access to the exchange’s transaction records and wallet information. In response, Zipmex claimed it was following all of the necessary regulations.
Ultimately, the SEC must determine if Zipmex has been acting in accordance with the law. If not, the consequences could be severe. Zipmex could face fines and other penalties, as well as the potential dissolution of their proposed acquisition by V Ventures. For now, Zipmex has been urged to clarify their status before the deadline set by the SEC.