Crypto funds witnessed outflows last week after recording five weeks of consecutive inflows. According to CoinShares Datadigital asset funds recorded net outflows of $600 million in the week ending June 14. Bitcoin and Solana funds, which had outflows of US$621 million and US$0.2 million, respectively. These outputs occur in the middle of a corresponding drop in Bitcoin price throughout the week and a more aggressive than expected Federal Open Market Committee (FOMC) meeting held during the week.
Crypto funds bleed the most since March, with Bitcoin in the lead
Crypto funds witnessed outflows of $600 million last week, following a massive $2 billion inflow the previous week, ending a recent $4.35 billion inflow over five weeks. The outflow recorded, according to data from CoinShares, was the largest since March 22, 2024 and occurred under comparable circumstances. Notably, the outflow that ended on March 22 followed a period of significant inflows totaling $3 billion the previous week. Investors had to remove their exposure to more stable assets due to the result of the FOMC meeting.
The FOMC held its last meeting on June 11 and 12, 2024, keeping interest rates at 5.25%-5.50%, leading many crypto investors to withdraw. Crypto is seen as a risky and speculative asset and therefore it is natural for investors to move to safer havens considering the high interest rates.
Unsurprisingly, most of the outflows came from Bitcoin, with the leading crypto asset’s crypto funds losing around $621 million. Furthermore, most of this Bitcoin outflow was recorded in US-traded Spot Bitcoin ETFs. According to the data, Spot Bitcoin ETFs witnessed outflows every day last week, with the exception of an inflow of $100.8 million on June 12. As a result, these Bitcoin ETFs saw a total of $580 million in outflows last week. Negative Bitcoin investor sentiment was also reflected in short Bitcoin products receiving inflows of $1.8 million.
Solana, who Had a tough week too In terms of price movement, it recorded $0.2 million in outflows across its investment products. Furthermore, multi-asset investment products recorded outflows worth US$1.1 million. Trading volume averaged about $11 billion for the week, well below the weekly average of $22 billion for the year. These outflows and small trading volume caused total assets under management (AuM) to fall from more than $100 billion to $94 billion during the week.
On the other hand, Ethereum received $13.1 million in outflows as investor interest continued to grow in anticipation of the launch of Spot Ethereum ETFs. BNB, Litecoin, XRP, Chainlink, and Cardano also witnessed inflows of $0.3 million, $0.8 million, $1.1 million, $0.7 million, and $0.8 million, respectively.
Featured image created with Dall.E, chart from Tradingview.com