© Reuters
Investing.com – In a note sent Monday evening in the monthly newsletter of Ark Invest, the management company led by Cathie Wood, Yassine Elmandra, head of cryptos for the company, spoke about the regulatory environment of the market for digital assets such as or in the United States.
He indeed noted that “major trading firms, including Jane Street Group and Jump Trading1, are reducing their participation in US cryptocurrency markets due to regulatory uncertainty and risk.”
Lamenting a system “once populated by well-established and credible institutions,” he lamented that “the cryptocurrency ecosystem in the United States now faces a vacuum that risks dampening interest from other investors. institutional”.
And it is, according to him, the lack of regulatory clarity that is responsible for the recent turmoil in the crypto market, pointing out that “as a result, the liquidity of cryptocurrencies in the United States has decreased considerably and the volatility of the cryptocurrency prices have increased,” and noting that “bitcoin trading volume fell 75%, from $20 billion a day in March to around $4 billion last week.”
Finally, the Ark analyst opined that “regulatory uncertainty appears to be discouraging both existing businesses and new entrants into the crypto space,” making “the US at risk of ceding its position to the vanguard of a sector in full transformation to countries such as the United Arab Emirates, South Korea, Australia and Switzerland. »