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.
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 Unsplash.
Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
