Digital asset investment surged to $2 billion in May, pushing year-to-date inflows to over $15 billion.
Digital asset investment products saw their fourth consecutive week of inflows, totaling $185 million, which boosted May’s total inflows to $2 billion. CoinShares reported that this surge has pushed year-to-date inflows beyond the $15 billion mark, setting a new record. However, despite this positive trend, weekly trading volumes dropped to $8 billion from $13 billion the previous week.
The United States led the inflows with $130 million, although existing ETF issuers faced significant outflows of $260 million. Switzerland recorded its second-largest weekly inflow of the year at $36 million. Canada saw a reversal of its earlier trend, with $25 million in inflows following a net outflow of $39 million in May. Modest inflows were observed in Hong Kong, Australia, and Germany, which saw $1.7 million, $1.4 million, and $0.5 million, respectively. In contrast, Sweden and Brazil experienced outflows, with Sweden losing $5.1 million and Brazil $4.4 million.
Market Dynamics
Bitcoin (BTC) continued to dominate the inflow landscape with $148 million, while short-bitcoin products saw outflows of $3.5 million. This indicates sustained positive sentiment among ETF investors towards Bitcoin. Ethereum (ETH) also witnessed its second consecutive week of inflows following the SEC’s approval of a spot-based ETF, which is set to launch in July 2024. Ethereum garnered $33.5 million in inflows, pushing its monthly inflows to $21 million and marking a significant turnaround after a 10-week outflow streak totaling $200 million. The positive momentum for Ethereum also benefited Solana (SOL), which attracted $5.8 million in inflows last week. Other notable inflows included Chainlink with $1 million, XRP with $0.8 million, Litecoin with $0.6 million, and Cardano with $0.3 million.
Conversely, blockchain equities faced challenges, experiencing $7.2 million in outflows last week and $516 million year-to-date. Despite the mixed performance in some areas, the overall trend in digital asset investments remains robust, reflecting growing investor confidence and interest in the sector.
The increasing inflows into digital asset investment products, particularly Bitcoin and Ethereum, suggest a positive outlook for the market. The record-breaking year-to-date inflows highlight digital assets’ growing acceptance and integration into mainstream investment portfolios. As regulatory clarity improves and new investment products like Ethereum’s spot-based ETF are introduced, the digital asset market will likely see continued growth and diversification.
