The analytical company Diar Ltd has released a report based on the data from CoinApi which says that traders are leaving US-based crypto exchanges for Asian ones.
Trading companies in China, Japan and South Korea seem to get much less regulatory attention now than those in the US, so they are gaining trading volume from those who want to simply trade virtual coins without having to dodge “regulatory cannon balls” every now and then, including various forms of KYC and AML procedures.
Besides, the US Security and Exchange Commission (SEC) is due to come up with their decision on the proposed Bitcoin ETFs and traders seem to fear it may not be as beneficial for them.
Coinbase and Co losing customers
The report says that big US trading platforms, such as Coinbase, Kraken and Bitstamp, have been declining in profits and volumes for a long while already. Besides, these giants are concentrating on the coins with the biggest market caps, like BTC and ETH. The reason for this could be that the exchanges fear that the SEC can turn them into securities with a finger click at any time.
Traders afraid of the coming Bitcoin ETF verdict
The report mentions the decision regarding the approval of Bitcoin ETF that the SEC is due to make soon, connecting it with contributing to the present market volatility. Experts believe that the decision on the ProShares Bitcoin ETF may produce a major impact on price movements of some ‘big’ coins.
Judging by the highs that BTC shorts have recently achieved, the market believes that after the SEC announces a verdict on ETFs crypto prices may go deeper in red. If the news is positive, however, the market may start recovering.