YEREVAN (CoinChapter.com) – Digital asset funds outflow hit $600 million last week, the largest since March, according to CoinShares’ latest report released on June 17. The Federal Reserve’s stance on interest rates caused investors to move away from fixed-supply assets like Bitcoin.
In contrast, short Bitcoin funds saw $1.8 million in inflows, indicating some investors are betting on further declines in Bitcoin’s price.
Bitcoin Holds Firm Above Key Support Level
From June 12 to June 18, Bitcoin‘s price showed resilience despite fluctuations. On June 13, the price peaked above $69,000 before dropping sharply and stabilizing around $66,000.
Throughout this period, Bitcoin’s price remained near its support level, with only brief dips below it. The consistent stability above $66,000 signals strong market support. This data, sourced from CoinMarketCap, reflects real-time market conditions.
Altcoins Attract New Investments
Despite Bitcoin’s challenges, altcoins attracted new investments. Ether vehicles recorded $13.2 million in inflows, showing investor interest.
Other altcoins performed well too. LIDO products attracted $2 million, while XRP products saw $1.1 million in inflows. BNB, Litecoin, Cardano, and Chainlink products also recorded small weekly inflows. However, these gains weren’t enough to offset the overall market decline.
The digital asset funds outflow caused total digital assets under management to drop from $100 billion to $94 billion in just a week. This highlights current market volatility.
Institutional Adoption of Digital Assets Still in Early Stages
Despite initial excitement about Bitcoin exchange-traded funds (ETFs) in the U.S., institutional adoption of digital assets remains in the early stages. Marc Degen, co-founder of Trust Square, described corporate adoption of Bitcoin as still in the “amateur league.”
Degen noted that Bitcoin ETFs have amassed $60 billion to $70 billion to date. In comparison, traditional institutions like JPMorgan saw $489 billion in net new client inflows in 2023 alone.
Franklin Templeton CEO Jenny Johnson also commented on institutional adoption. She mentioned that while interest is growing, significant institutional capital deployment is yet to occur. Johnson suggested a second wave of investment might bring more participation.
