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.
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