Persistent Outflow Trends in Cryptocurrency Investment Products
For the third consecutive week, regulated cryptocurrency investment products saw capital outflows exceeding $1 billion in total. From June 24 to 28 alone, outflows amounted to $30 million, the lowest since April, as reported by CoinShares.
Monitoring Investment Product Balances
CoinShares experts monitor balances of spot and futures ETFs across the US, Hong Kong, Switzerland, Germany, and other countries. These funds predominantly hold Bitcoin and focus on the American market.
Investors also hold assets in multicurrency funds or products based on Ethereum, Solana, XRP, Chainlink, and other major cryptocurrencies.
Recent Ethereum Fund Outflows
Last week, investors withdrew $61 million from Ethereum-based cryptocurrency funds. Cumulatively, outflows from Ethereum funds in the past two weeks reached $119 million, marking the highest since August 2022. They have shown the poorest financial performance compared to other groups since the beginning of the year.
Inflow Trends Across Different Regions
The US recorded a significant inflow of $43 million, indicating positive investor sentiment. In Brazil and Australia, investments amounted to $7.6 million and $3 million, respectively. Conversely, negative sentiments prevailed in Europe and Canada, with outflows of $29 million in Germany, $14 million in Canada, and $13 million in Switzerland.
Trading Volume and Fund Performance
CoinShares notes a low trading volume of fund shares, totaling $6.2 billion last week, below the annual average weekly volume of $14.2 billion.
The first week of June contrasted sharply with over $2 billion inflows into CoinShares-tracked funds and a 55% increase in trading volume.
However, the second week of June saw a significant outflow of $600 million from regulated cryptocurrency funds, the largest since March according to CoinShares. By the third week, outflows surpassed $500 million.
The accelerated pace of fund withdrawals signals “the onset of a true correction,” highlighted James Butterfill, CoinShares’ chief market analyst, in the market report.
