Cryptocurrency investment funds have experienced their largest weekly outflow since March, with data showing investors moved over $600 million away from these products amid a cryptocurrency market correction.
According to CoinShares’ Digital Asset Fund Flows report, the week ending June 14 saw a net $600 million leave cryptocurrency investment products to reverse a five-week stretch of inflows that totaled $4.35 billion.
This shift comes amidst a decline in Bitcoin prices and a hawkish Federal Open Market Committee (FOMC) meeting. The FOMC, which sets U.S. interest rates, opted to maintain the current rate of 5.25%-5.50% on June 11-12.
Bitcoin funds bore the brunt of the outflows, losing roughly $621 million with the majority of this outflow being concentrated in spot Bitcoin exchange-traded funds (ETFs), which saw outflows every day last week, with the exception of a single inflow of $100.8 million on June 12.
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Meanwhile products shorting BTC, which profit from a decrease in Bitcoin prices, saw inflows of $1.8 million, reflecting the bearish sentiment among some investors, while those offering exposure to the second-largest cryptocurrency by market capitalization Ethereum ($ETH) saw $13 million of inflows, likely fueled by anticipation surrounding the expected launch of spot Ethereum ETFs later this year.
Solana, a major Ethereum sival, saw $200,000 in outflows from its investment products, while having had $36 million inflows year-to-date, compared to Ethereum’s $94 million and BTC’s $16.1 billion.
Multi-asset investment products, those offering exposure to multiple digital assets, also saw a modest outflow of $1.1 million. Trading volume remained subdued throughout the week, averaging around $11 billion – significantly lower than the $22 billion weekly average for 2024. These outflows and low trading volume resulted in a decrease in total assets under management (AUM) from over $100 billion to $94 billion.
Various altcoins saw smaller inflows, including BNB ($0.3 million), Litecoin ($0.8 million), XRP ($1.1 million), Chainlink ($0.7 million), and Cardano ($0.8 million).
Featured image via Pixabay
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- Source: https://www.cryptoglobe.com/latest/2024/06/crypto-investment-funds-face-largest-weekly-outflow-since-march-amid-market-correction-with-btc-sol-and-xrp-standing-out/
