Meltem Demirors, the Chief Strategy Officer (CSO) at CoinShares, has recently voiced her concerns about the current state of the cryptocurrency markets. In a recent interview with Bloomberg, Demirors highlighted the increasing levels of uncertainty that are causing hesitation among various market players.
Demirors described the past summer as a “summer of apathy,” a period marked by subdued market activity despite positive news. For instance, the announcement of BlackRock’s spot Bitcoin ETF application did lead to a brief surge in Bitcoin prices and inflows into crypto-structured products. However, the overall market has seen $300 million in outflows over the past month. Additionally, trading volumes for publicly listed crypto products have dropped by 70%, and there has been a 30% decline in trading volumes in spot and derivatives markets.
According to Demirors, this lackluster summer could evolve into a “winter of discontent” as investors, traders, and market makers remain cautious and inactive. She emphasized that the prevailing uncertainty is causing market participants to stay on the sidelines.
On the regulatory front, Demirors expressed that there is bipartisan agreement among U.S. lawmakers on the need for regulatory clarity in the crypto industry. She stressed the importance of a cohesive approach from Congress, as the existing regulatory bodies are not in agreement on how to proceed. Demirors, who has been in the crypto industry for nearly a decade and has built multiple crypto-related businesses in the U.S., mentioned that she does not want to consider relocating her operations due to the lack of clear policies.
She concluded by stating that the current state of affairs, filled with numerous lawsuits and conflicting legal precedents, requires a bipartisan effort to bring about meaningful change. Demirors believes that only a united approach from all parties can resolve the complexities facing the crypto industry today.
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