Bitcoin and Solana Take the Hit
Crypto funds have been experiencing outflows for the first time in five weeks. Last week, investors pulled $600 million out of these funds, according to CoinShares data.
The bulk of these outflows came from Bitcoin and Solana funds, which lost $621 million and $0.2 million, respectively. This coincides with a drop in Bitcoin’s price and a hawkish Federal Open Market Committee (FOMC) meeting.
FOMC Meeting Spurs Outflows
The FOMC meeting on June 11-12 kept interest rates high, prompting investors to move their money into safer assets. Cryptocurrencies, being seen as risky investments, suffered as a result.
Bitcoin ETFs Hit Hard
Most of the Bitcoin outflows came from Spot Bitcoin ETFs traded in the US. These ETFs experienced outflows every day last week, totaling $580 million.
Solana and Other Assets Affected
Solana, which has also faced price declines, saw $0.2 million in outflows from its investment products. Multi-asset investment products also lost $1.1 million.
Ethereum and Others Gain
Despite the overall outflows, Ethereum received $13.1 million in inflows as investors anticipate the launch of Spot Ethereum ETFs. BNB, Litecoin, XRP, Chainlink, and Cardano also saw inflows of varying amounts.
Trading Volume and Assets Under Management Decline
Trading volume averaged $11 billion for the week, below the yearly average of $22 billion. Total assets under management (AuM) fell from over $100 billion to $94 billion.
