Crypto funds witnessed an outflow last week after five weeks of consecutive inflows. According to CoinShares datadigital asset funds saw net outflows of $600 million in the week ending June 14. The outflow was concentrated in Bitcoin and Solana funds, which exited $621 million and $0.2 million, respectively. This outflow takes place during a corresponding decline in the price of Bitcoin during the week and a more aggressive than expected Federal Open Market Committee (FOMC) meeting held during the week.
Crypto funds are bleeding the most since March, with Bitcoin leading the way
Crypto funds witnessed an outflow of $600 million last week, following an intense inflow of $2 billion in the previous week, ending a recent inflow of $4.35 billion over five weeks. The recorded outflow was the largest since March 22, 2024, according to CoinShares data, and took place under similar circumstances. Notably, the outflows ending March 22 came after a period of significant inflows totaling $3 billion in the previous week. Investors had to withdraw their exposure to more stable assets because of the outcome of the FOMC meeting.
The FOMC held its most recent meeting on June 11 and 12, 2024, keeping interest rates at 5.25%-5.50%, causing many crypto investors to withdraw. Crypto is seen as a risky, speculative asset, and therefore it is only natural that investors are moving to safer havens given the high interest rates.
Unsurprisingly, most of the outflows came from Bitcoin, with the top crypto assets losing around $621 million. Furthermore, most of these Bitcoin outflows were recorded in Spot Bitcoin ETFs traded in the US. According to data, Spot Bitcoin ETFs witnessed outflows every day last week, barring an inflow of $100.8 million on June 12. As a result, these Bitcoin ETFs recorded a total of $580 million in outflows last week. Negative Bitcoin investor sentiment was also reflected in Bitcoin shorts receiving inflows worth $1.8 million.
Solana, which one also had a tough week in terms of price action, it recorded an outflow of $0.2 million in its investment products. Additionally, multi-asset investment products experienced outflows of $1.1 million. Trading volume averaged about $11 billion this week, well below the weekly average of $22 billion for the year. Due to these outflows and low trading volume, total assets under management (AuM) fell from over $100 billion to $94 billion over the week.
On the other hand, Receive Ethereum $13.1 million in outflows as investor interests 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