The weekly outflow from crypto funds amounted to $600 million

The weekly outflow from crypto funds amounted to $600 million

user avatar

by Eve Adams

2 years ago


From June 10 to 14, 2024, $600 million was withdrawn from crypto funds, as indicated in the weekly report by CoinShares.

Analysts noted that this is the largest outflow of funds in the past six weeks, with the last significant capital movement observed on March 22, 2024.

The main reason for the asset withdrawal, according to experts, is the meeting of the Federal Open Market Committee (FOMC) of the US Federal Reserve, which took place on June 12. After the regulator's decision to leave the interest rate unchanged, the price of Bitcoin fell below $67,000.

Bitcoin Price

$600 million outflow may be linked to the FOMC meeting. The regulator's decision prompted market participants to reduce their investments, the report states.

The main outflow of capital was in bitcoin products — $621 million. Meanwhile, projects related to Ethereum attracted $13.1 million.

Capital movement in the crypto fund sector by underlying assets

Altcoins also demonstrated capital inflows. Investors showed interest in products based on Lido DAO (LDO) and Ripple (XRP), which attracted $2 million and $1 million respectively.

Another significant factor in the negative dynamics was the GBTC fund from Grayscale, which lost $273 million.

Most other exchange-traded funds also showed negative results. For example, $150 million was withdrawn from bitcoin ETFs of Ark Invest and 21 Shares, and $146 million from Fidelity Investments. Only one crypto fund, iShares from BlackRock, recorded a positive capital inflow — $42 million.

Capital inflow/outflow in the crypto fund sector by ETP providers

The report notes that the total assets under management (AuM) decreased from over $100 billion to $94 billion over the week. Regionally, the main outflow of investments occurred in the United States — $565 million. Negative sentiment was also observed among investors from Canada, Switzerland, and Sweden — $15 million, $24 million, and $15 million respectively.

Germany, on the other hand, recorded a capital inflow of $17.4 million. Australia and Brazil finished the week with positive results — $1.7 million and $0.7 million.

Capital inflow/outflow in the crypto fund sector by country

It is worth noting that in May 2024, projects in the Web3 and blockchain sectors attracted over $1 billion in investments.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Solana Launches Create for Branded Yield-Bearing Tokens

On October 22, Solana launched Create, a platform designed to simplify the issuance of branded yield-bearing tokens.

user avatarKenji Takahashi

Key Themes and Expectations for Ripple's Upcoming Conference

Key themes for Ripple's upcoming conference include payments, tokenization, stablecoins, and XRP utility, aiming to provide insights into financial relationships and technical settlement processes.

user avatarGustavo Mendoza

World Discusses Challenges in Transaction Risk Screening

World discusses the complexities of transaction risk screening, highlighting the need for thorough verification of participants and payment destinations.

user avatarRajesh Kumar

Ripple's Swell and Apex Conference Scheduled for October

Ripple's Swell conference is scheduled for October 27-29 in New York, merging with the Apex developer gathering to discuss payments, tokenization, stablecoins, and XRP utility.

user avatarMaria Fernandez

World Launches New Banking and Finance Services

World has introduced its banking and finance services focusing on human verification and credentialing.

user avatarMiguel Rodriguez

UNDP and Blockchain for Good Alliance Launch Cybersecurity Programme

On October 19, the UNDP and the Blockchain for Good Alliance announced a two-year cybersecurity programme aimed at enhancing blockchain adoption in public institutions.

user avatarLuis Flores

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.