Outflows from cryptocurrency investment products from 10 to 16 June totalled $5.1 million, against $88 million a week earlier. Analysts at CoinShares provided this assessment.
Over the past nine weeks, funds have shed $423 million. The last time investments contracted this quickly was from April to June 2022.
Towards the end of the reporting week, the situation was tempered by modest inflows on the back of news about BlackRock’s filing with the SEC to launch a spot Bitcoin-ETF, analysts said.
From Bitcoin products, outflows of $0.5 million ($51.6 million a week earlier). Ethereum funds recorded outflows of $5 million versus $35.6 million in the previous reporting period.
In altcoins, mixed dynamics were observed. XRP, Cardano and Polygon-based products attracted $1 million, $0.6 million and $0.2 million respectively. Funds based on Tron and Avalanche saw outflows of $0.4 million, while those based on a basket of assets posted outflows of $1.2 million.
Despite improvement in regulatory conditions in Hong Kong, there has not been a meaningful inflow into ETP since the start of the year. AUM of companies listed in the special administrative region of China remains near $39 million, the analysts said.
Last week, CoinShares noted investor caution due to the lack of clarity regarding the end of the Federal Reserve’s monetary tightening cycle.
After 14 June, the Federal Reserve for the first time since March 2022 held the target range at 5–5.25% per annum. The market does not rule out a rate increase at the July meeting.
Earlier, former chairman of the CFTC Timothy Massad said, that the future of digital assets depends on the outcomes of the SEC lawsuits against Binance and Coinbase.