Last week, cryptocurrency funds experienced outflows after five weeks of continuous inflows. The report states that according to CoinShares dataFor the week of June 14, digital assets funds experienced net outflows totaling $600 million. These outflows were concentrated on Bitcoin The Solana Funds saw $621m and $0.2m exits respectively. This outflow comes amid a comparable drop in the price of Bitcoin throughout the week and a more hawkish-than-expected Federal Open Market Committee (FOMC) meeting held during the week.
Crypto Funds Swell the most since March, with Bitcoin in the lead
Last week crypto funds saw outflows totaling $600m after a massive inflow of $2bn the week before. This brought to an abrupt end a five-week run in which they had received $4.35bn. CoinShares’ data shows that the $600 million outflow last week was the biggest since March 22, 2020, under similar conditions. Note that the March 22 outflow came immediately after $3 billion worth of inflows the week before. Investors were forced to shift their assets to safer investments due to the outcome The FOMC Meeting
The FOMC held its most recent meeting On June 11th and 12th, 2024 interest rates will be held at 5.25%-5.5%, causing many investors to withdraw their crypto. Cryptocurrency is considered a high-risk, speculative investment, so investors are compelled to seek out safer assets, especially with the current interest rate.
Bitcoin crypto fund losses of $621 millions were the largest outflows. This Bitcoin outflow is primarily registered on Spot Bitcoin exchange-traded funds (ETFs), which are traded in the US. Spot Bitcoin Exchange Traded Funds (ETFs), according to the data, saw daily outflows last week. Only one day, June 12, did they see an inflow of $100.8 Million. In total, Bitcoin ETFs lost $580 million last week. This negative Bitcoin investor sentiment also showed up in the $1.8million inflows into short Bitcoin products.
Solana also had a rough week Price action has resulted in outflows totaling $0.2 Million in investment products. Multi-asset investments products saw outflows totaling $1.1million. Trading volume for the entire week was $11 Billion, which is significantly lower than the weekly average of $22 Billion for this year. The total asset under management (AuM), which is the sum of all assets managed, fell from more than $100 billion in the previous week to just $94 billion due to these outflows.
The other hand Ethereum received As investor interest continued to increase in anticipation of the launch of Spot Ethereum ETFs. BNB, Litecoin XRP Chainlink and Cardano all saw inflows between $0.3 and $0.8 millions, $1 million and $0.7 million.
Featured image was created using Dall.E chart, from Tradingview.com
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com