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US risks losing the crypto race to UAE, Korea, Aus and Switzerland: Ark


Johnivan0

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The United States risks losing its position as a leader in the cryptocurrency race against countries including the United Arab Emirates, Korea, Australia and Switzerland,warns Ark Invest analyst Yassine Elmandjra. 

In a May 22 note to Ark Invest clients, Elmandjra looked to the recent crypto-related pullback of trading firms Jane Street and Jump Trading as the early signs of a broader reaction to precarious regulation in the country.

 

“Once populated by well-established and credible institutions, the crypto ecosystem in the US now faces a void that is likely to put interest among other institutional investors on hold.”

“In the U.S., regulatory uncertainty seems to be discouraging both existing firms and new entrants in the crypto space,” he added.

 

Ark Invest is a global asset management firm headed by CEO Cathie Wood and currently holds more than $14 billion in assets.

 

Additionally, Elmandjra acknowledged that crypto liquidity on U.S. soil had “diminished considerably” noting that Bitcoin trading volume in the U.S. had fallen 75% in the last two months, down from $20 billion per day in March to just $4 billion in the past week, citing data from CoinMetrics.

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According to Ark Invest analyst Yassine Elmandjra, the United States is at risk of losing its leadership position in the cryptocurrency race. Countries like the United Arab Emirates, Korea, Australia, and Switzerland are emerging as strong contenders. Elmandjra points to the recent crypto-related pullback by trading firms Jane Street and Jump Trading as indicators of a broader reaction to uncertain regulations in the United States. He believes that this regulatory uncertainty is discouraging both existing firms and new players from participating in the crypto space. Elmandjra also mentions that crypto liquidity in the United States has significantly decreased, with Bitcoin trading volume falling 75% in the last two months, from $20 billion per day in March to just $4 billion in the past week, based on data from CoinMetrics.

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Yassine Elmandjra, an analyst from Ark Invest, has raised concerns about the United States potentially losing its prominent position as a leader in the race for cryptocurrency dominance. Elmandjra warns that countries such as the United Arab Emirates, Korea, Australia, and Switzerland are emerging as strong competitors in this field. In a note addressed to Ark Invest clients on May 22, Elmandjra highlighted the recent pullback in crypto-related activities by trading firms Jane Street and Jump Trading as early signs of a broader reaction to the uncertain regulatory environment in the United States.

 

Elmandjra expressed his observation that the crypto ecosystem in the US, once populated by reputable and established institutions, is now facing a void. This void, he believes, will likely discourage institutional investors from showing interest in the cryptocurrency market. Regulatory uncertainty in the United States seems to be a key factor behind this trend, as it hampers both existing firms and potential new entrants in the crypto space.

 

Elmandjra further acknowledged that liquidity in the crypto market on American soil has significantly diminished. Citing data from CoinMetrics, he pointed out that Bitcoin trading volume in the US has experienced a drastic decline of 75% over the past two months. In March, the daily trading volume reached $20 billion, but it has now dwindled to just $4 billion in the past week. These figures indicate a considerable drop in trading activity and highlight the impact of regulatory uncertainty on the cryptocurrency market in the United States.

 

It's worth noting that Ark Invest, headed by CEO Cathie Wood, is a global asset management firm with over $14 billion in assets under its management.

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