Digital Asset Inflows Hit $2bn in May, Ethereum (ETH) Sees Positive Sentiment Shift

Digital
asset
investment
products
experienced
significant
inflows
in
May,
reaching
a
total
of
$2
billion,
according
to
CoinShares.
This
impressive
figure
contributed
to
a
year-to-date
inflow
surpassing
$15
billion
for
the
first
time
on
record.

Weekly
Inflows
and
Regional
Contributions

The
momentum
continued
with
digital
asset
investment
products
recording
their
fourth
consecutive
week
of
inflows,
totaling
$185
million.
However,
trading
volumes
for
the
week
were
down,
falling
to
$8
billion
from
the
previous
week’s
$13
billion.

The
United
States
led
the
inflows
with
a
net
$130
million,
though
incumbent
ETF
issuer
outflows
increased
to
$260
million.
Switzerland
marked
its
second-largest
week
of
inflows
for
the
year
at
$36
million,
while
Canada
reversed
its
trend
with
$25
million
in
inflows
despite
a
net
outflow
of
$39
million
in
May.

Bitcoin
and
Ethereum
Performance

Bitcoin
(BTC)
continued
to
attract
investment,
with
inflows
totaling
$148
million.
In
contrast,
short-bitcoin
products
saw
outflows
amounting
to
$3.5
million,
indicating
a
positive
sentiment
among
ETF
investors.

Ethereum
(ETH)
also
saw
a
turnaround,
recording
its
second
week
of
inflows
following
the
SEC
approval
of
a
spot-based
ETF,
which
is
expected
to
launch
in
July
2024.
This
marks
a
significant
shift
in
investor
sentiment
for
Ethereum,
which
had
previously
experienced
a
10-week
run
of
outflows
totaling
$200
million.
The
positive
news
for
Ethereum
has
also
benefited
Solana
(SOL),
which
saw
a
further
$5.8
million
in
inflows
last
week.

Other
Market
Dynamics

Despite
the
success
of
direct
investments
in
digital
assets,
blockchain
equities
have
struggled,
experiencing
$7.2
million
in
outflows
last
week
and
$516
million
this
year.

Overall,
the
data
indicates
a
growing
confidence
in
digital
asset
investment
products,
particularly
in
major
cryptocurrencies
like
Bitcoin
and
Ethereum.
The
approval
of
new
financial
instruments
such
as
spot-based
ETFs
is
likely
to
further
bolster
this
trend.

For
more
detailed
insights,
the
full
report
is
available
on
the

CoinShares
blog.

Image
source:
Shutterstock

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