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From June 10 to 14, 2024, $600 million was withdrawn from crypto funds, as indicated in the weekly report by CoinShares.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 For example, $150 million was withdrawn from bitcoin ETFs of Ark Invest and 21 Shares, and $146 million from Fidelity Investments.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

SK Hynix Stock Eyes New Highs Amid Bullish Predictions

SK Hynix stock opened at 189 on Thursday, aiming to breach the 200 level with bullish predictions from Wolfe Research, targeting 250.

user avatarMaria Gutierrez

Optimism Superchain Surpasses $14 Billion in Total Value Locked

Optimism's Superchain has recently surpassed a remarkable $14 billion in total value locked, showcasing the significant growth of its ecosystem.

user avatarDavid Robinson

Canary Capital Launches TRON ETF, Expanding Institutional Access

Canary Capital launches the Canary Staked TRX ETF, enhancing institutional access to the TRON network.

user avatarJacob Williams

Coinbase's Base Achieves 75 Million Daily Transactions

Coinbase's Ethereum Layer 2 ecosystem, Base, has reached a significant milestone with 75 million daily transactions, indicating a diverse range of activities on the network.

user avatarAndrew Smith

TRON Achieves Major Milestone with 30 Trillion Transactions

TRON DAO announces that its blockchain has surpassed 30 trillion in total transaction volume, marking a significant milestone in its growth.

user avatarZainab Kamara

Bitget's Self-Custody Wallet Achieves 40 Million Downloads

Bitget announces that its self-custody wallet has achieved 40 million cumulative downloads, marking significant growth for the company.

user avatarSon Min-ho

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.