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The Qatari sovereign wealth fund likely won’t invest in Bitcoin anytime soon, a local finance executive has told Cointelegraph. Uncertainty in the market has had a knock-on effect on Bitcoin exchange-traded funds, which have seen net inflows drop by 80%. Meanwhile, two United States senators have penned a letter to Gary Gensler at the Securities and Exchange Commission, pressuring him not to approve any other crypto ETFs.
Major Qatar investment in Bitcoin highly unlikely, local exec says
Despite ongoing rumors, the Qatar Investment Authority (QIA) likely has no plans to add Bitcoin to its holdings, according to a local financial executive.
In an emailed response to Cointelegraph, Shadi Qishta, the chief financial officer of Kown Capital, was asked about the likelihood of QIA investing in Bitcoin. “I don’t think it will happen in one way or another any time soon since the QIA has a diverse investment strategy and speeding investments across various asset classes, sectors and geographies to mitigate risk and capture opportunities in different markets and industries,” he said.
“Despite the global popularity of cryptocurrencies, the adoption in Qatar is relatively low among the general public,” Qishta explained.
Rumors of Qatari interest in Bitcoin ramped up following the successful launch of spot Bitcoin ETFs in the United States. These funds have attracted institutional interest, with wealth manager Cetera recently approving the inclusion of four spot BTC ETFs into clients’ portfolios.
Spot Bitcoin ETF net inflows drop as BTC price dips
United States-based spot Bitcoin exchange-traded funds (ETFs) recorded one of their lowest net inflow days of just $132 million on March 14 — the lowest level in the past eight trading days and an 80% fall from March 13.
The Thursday drop marked the second consecutive day of decline. On Wednesday, inflows hit $684 million, a 38.3% drop from the March 12. Tuesday saw record-breaking single-day inflows of $1.05 billion.
The total flow of funds into the ETFs stood at $390 million on March 14, with the Grayscale Bitcoin Trust ETF (GBTC) seeing another $257 million in outflows, bringing net inflows to $132 million. On the same day, the VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund recorded inflows of $13.8 million and $13.7 million, respectively. Despite a significant outflow from GBTC, net flows remained positive on Thursday.
Market pundits suspect the current market volatility, regulatory uncertainties and macroeconomic factors have made investors cautious. The current decline is also attributed to next week’s Federal Open Market Committee meeting, which could shed some light on the Federal Reserve’s plans for interest rates in the future.
Senators pressure SEC’s Gensler not to approve any more crypto ETFs
Two United States senators want Gary Gensler to pull the pin on any further crypto exchange-traded funds (ETFs), citing “enormous risks” to retail investors.
In a March 11 letter, Democrat senators Jack Reed and Laphonza Butler claimed that allowing any further approvals of crypto ETFs by the Securities and Exchange Commission would see investors exposed to “thinly traded” markets rife with fraud and manipulation.
There are eight proposed spot Ether ETF applications awaiting approval by the SEC, and there have been hopes that other altcoins could eventually walk the same path.
“Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes,” read the letter.
The letter was met with fierce opposition from members of the crypto community.
Coinbase chief legal officer Paul Grewal criticized the claims made within the letter, arguing, among others that he market for many cryptocurrencies demonstrate quality metrics that “exceed even the largest traded equities.”
As a 33-member organization, COPA was founded in 2020 “to encourage the adoption and advancement of cryptocurrency technologies and to remove patents as a barrier to growth and innovation.” Some of its biggest members include Coinbase, Block, Meta, Kraken, and MicroStrategy.
Source: Cointelegraph.com
