Crypto funds saw 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. The outflows were concentrated in Bitcoin and Solana funds, which recorded $621 million and $0.2 million, respectively. These outflows have a counterpart Bitcoin price drop throughout the week and a more hawkish-than-expected Federal Open Market Committee (FOMC) meeting held during the week.
Cryptocurrency funds have lost the most since March, with Bitcoin leading the way
$600 million flowed out of crypto funds last week, following a massive inflow of $2 billion the previous week, ending a recent inflow of $4.35 billion spanning five weeks. The recorded outflow, according to CoinShares data, was the largest since March 22, 2024 and took place in comparable circumstances. It is worth noting that the outflow of funds, which ended on March 22, followed a period of significant inflows of funds, which amounted to $3 billion in the previous week. Investors had to withdraw their exposure to more stable assets because of the result FOMC meetings.
FOMC its last meeting took place on June 11 and 12, 2024, keeping interest rates at 5.25-5.50%, which led to the withdrawal of many cryptocurrency investors. Crypto is perceived as a risky and speculative asset, so it is natural for investors to move to safer havens given the high interest rates.
Not surprisingly, most of the outflows came from Bitcoin, with the leading crypto asset’s crypto funds losing approximately $621 million. Moreover, most of this Bitcoin outflow was recorded in US Spot Bitcoin ETF trading. According to the data, Spot Bitcoin ETFs have seen outflows every day over the past week, except for 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. Bitcoin investor negative sentiment was also reflected in Bitcoin low products, which received $1.8 million in inflows.
Solana, who I had a coarse week too in terms of price action, it recorded outflows of USD 0.2 million across its investment products. Additionally, multi-asset investment products experienced outflows of USD 1.1 million. Trading volume averaged about $11 billion per 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 decline from over $100 billion to $94 billion in a week.
On the other hand, Ethereum received Outflows of $13.1 million due to increased investor interest in anticipation of the launch launch of Spot Ethereum ETFs. BNB, Litecoin, XRP, Chainlink, and Cardano also saw 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
