What Happened To Crypto-ETFs In June
Crypto exchange-traded funds saw outflows for the third consecutive week, losing $1.2 billion in investments. This review will explore why June was problematic and whether we should be worried about these outflows.
Most losses occurred in US spot Bitcoin-ETFs, which hit $15.9 billion on June 7. Inflows resumed on June 25 but remain much lower than the average $126 million per day.
Hong Kong Bitcoin-ETFs fared even worse. Starting on 2 May with $248 million, they have since lost $30 million (12.1%).
Ethereum hasn’t benefited from the anticipated US spot ETFs this month. In the past two weeks, investors withdrew a record $119 million, the highest since August 2022.
By the end of the first half of the year, Ethereum is the only crypto asset with a negative trend.
About half of the inflows into spot ETFs came from retail investors, who likely also influenced the outflows. Their decision to pull out of crypto funds was driven by two factors: Bitcoin’s prolonged consolidation and the rise of the AI sector, particularly NVIDIA shares.
Retail investors tend to follow trends, so their exit has little impact on long-term prospects. They will return when growth resumes.
Cryptocurrencies involve complexity and carry a high risk of rapid monetary loss due to volatility and changing regulatory landscape. It’s crucial to ensure you understand how cryptocurrencies operate and can withstand the potential high-risk scenario of losing your assets.
This campaign is not region-specific and should not be interpreted as an invitation to engage in cryptocurrencies operations.
