Digital Asset Fund Flows | June 17th 2024

FOMC dot plot likely causes outflows of US$600m

• Digital asset investment products experienced outflows totalling US$600 million, the largest since March 22, 2024, likely due to a more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed-supply assets.

• The outflows were entirely focussed on Bitcoin, seeing US$621m outflows. The bearishness also prompted US$1.8m inflows in to short-bitcoin.

• A broad selection of altcoins saw inflows, led by Ethereum, LIDO and XRP.

Digital asset investment products experienced outflows totalling US$600 million, the largest since March 22, 2024. This occurred under similar circumstances: a period of significant inflows followed by a more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed-supply assets. These outflows and recent price sell-off saw total assets under management (AuM) fall from above US$100bn to US$94bn over the week.

Trading volumes remain lower at US$11bn for the week, compared to US$22bn weekly average this year, but well above the US$2bn a week last year. Digital asset ETPs are maintaining a steady 31% of global trading volumes on trusted exchanges.

Regionally, while the US saw most of the outflows totalling US$565m, the negative sentiment was not solely focussed there, with Canada, Switzerland and Sweden seeing outflows of US$15m, US$24m and US$15m respectively. Germany bucked the trend with US$17m inflows.

The outflows were entirely focussed on Bitcoin, seeing US$621m outflows, the bearishness also prompted US$1.8m inflows into short-bitcoin.

A broad selection of altcoins saw inflows, led by Ethereum, LIDO and XRP which received US$13m, US$2m and US$1m respectively.

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