Solana
Bitcoin and Solana suffer as institutional investors withdraw $600 million from crypto funds – TradingView News
Crypto funds saw outflows last week after recording five consecutive weeks of inflows. Digital asset funds saw net outflows of $600 million for the week ending June 14, according to CoinShares data. The outflows were concentrated in the Bitcoin and Solana funds, which saw net outflows of $621 million and $0.2 million, respectively. These outflows come amid a corresponding 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 bleed the most since March, with Bitcoin leading the way
Crypto funds saw outflows of $600 million last week after an intense $2 billion inflow the previous week, ending a recent five-week inflow of $4.35 billion. According to CoinShares data, the recorded outflow was the largest since March 22, 2024 and occurred under comparable circumstances. It is worth noting that the outflows ended on March 22 after a period of large inflows totaling $3 billion the previous week. Investors had to withdraw their exposure to more stable assets due to the results of the FOMC meeting.
The FOMC held its last meeting on June 11-12, 2024, keeping interest rates between 5.25% and 5.50%, leading many crypto investors to withdraw. Crypto is considered a risky and speculative asset, and so it is only natural for investors to turn to safer havens given the high interest rates.
Unsurprisingly, most of the outflows came from Bitcoin, with the leading crypto asset’s crypto funds losing around $621 million. Additionally, the majority of these Bitcoin outflows were recorded in US-traded Spot Bitcoin ETFs. According to the data, Spot Bitcoin ETFs saw outflows every day last week, except for a $100.8 million inflow on June 12. As a result, these Bitcoin ETFs saw a total of $580 million in outflows last week. Negative Bitcoin investor sentiment was also reflected in short Bitcoin products which received inflows worth $1.8 million.
Solana, which also had a rough week in terms of price action, saw $0.2 million in outflows in its investment products. Additionally, multi-asset investment products saw capital outflows amounting to $1.1 million. Trading volume averaged about $11 billion for the week, well below the weekly average of $22 billion for the year. These capital outflows and low trading volume caused total assets under management (AuM) to fall by over $100 billion to $94 billion during the week.
On the other hand, Ethereum received $13.1 million in outflows as investor interest continued to grow in anticipation of the launch of the Spot Ethereum ETFs. BNB, Litecoin, XRP, Chainlink and Cardano also saw inflows of $0.3 million, $0.8 million, $1.1 million, $0.7 million and $0.8 million, respectively.