crypto funds witnessed capital outflows last week after recording five weeks of consecutive inflows. According CoinShares DataDigital asset funds recorded $600 million in net outflows during the week ending June 14. The departures were concentrated in bitcoin and the Solana funds, which recorded outflows of $621 million and $0.2 million, respectively. These departures occur in the middle of a corresponding bitcoin price drop throughout the week and a more aggressive than expected Federal Open Market Committee (FOMC) meeting held during the week.
crypto Funds Bleed Biggest Since March, With bitcoin Leading
crypto funds witnessed outflows of $600 million last week after a heavy inflow of $2 billion in the previous week, ending a recent five-week inflow of $4.35 billion. The recorded outflow, according to CoinShares data, was the largest since March 22, 2024 and occurred under comparable circumstances. Notably, the capital outflow that ended on 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 crypto-200-m-liquidated-in-selloff/” rel=”nofollow”>due to the result of the FOMC meeting.
The FOMC held its last meeting on June 11 and 12, 2024, keeping interest rates between 5.25% and 5.50%, leading many cryptocurrency investors to withdraw. Cryptocurrencies are considered a speculative and risky asset, so it is natural for investors to opt for safer havens considering the high interest rates.
Unsurprisingly, the majority of 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 spot bitcoin ETF trading in the US. According to the data, bitcoin Spot ETFs witnessed outflows every day of the past 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. The negative bitcoin investor sentiment was also reflected as bitcoin shorts received inflows worth $1.8 million.
Solana, who I also had a difficult week In terms of price action, it saw $0.2 million of outflows across its investment products. Additionally, multi-asset investment products saw outflows worth $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 low trading volume caused total assets under management (AuM) to fall from over $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 ethereum Spot ETF launch. BNB, Litecoin, XRP, Chainlink, and Cardano also recorded inflows of $0.3 million, $0.8 million, $1.1 million, $0.7 million, and $0.8 million, respectively.
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