Key Points
- Digital asset funds saw a fourth week of inflows, totaling $185 million for the final week of May.
- Bitcoin and Ethereum dominated weekly inflows, while multi-asset funds experienced outflows.
Digital asset funds marked a fourth consecutive week of inflows, as per a recent report. The final week of May witnessed $185 million in weekly inflows, culminating in total monthly inflows of $2 billion. This has pushed the year-to-date capital inflow above $15 billion.
Investment Trends
The majority of weekly inflows, to the tune of $130 million, originated from the United States. However, the report also highlighted incumbent issuer outflows of $260 million in the U.S.
Most weekly inflows were attributed to Bitcoin (BTC), which secured $148 million in investment flows. Meanwhile, short Bitcoin funds experienced $3.5 million in weekly outflows, resulting in a monthly total of $12.5 million in outflows. This suggests that the sentiment among Bitcoin investors remains positive.
Other Digital Assets
Ethereum (ETH) recorded weekly inflows of $33.5 million for the final week of May and month-to-date inflows of $21.6 million. This change in investor sentiment was likely influenced by the approval of Ethereum exchange-traded funds (ETFs) in the United States. Previous weeks had seen a slump in investor sentiment among institutional investors, with $200 million in outflows from ETH exchange-traded products.
Solana (SOL) funds also saw positive inflows, with $5.8 million coming in for the week ending on May 31, making the monthly total $24.8 million. In contrast, multi-asset funds performed poorly in May, with weekly outflows of $2.7 million recorded for the final week and $12.2 million in monthly outflows from multi-asset funds and products.
The United States Securities and Exchange Commission (SEC) approved Ethereum exchange-traded funds in the United States on May 23, 2024. Since then, more than $3 billion in ETH has been moved from centralized exchanges, indicating potential supply shock issues for the digital asset in the coming weeks and months as exchange balances drop to lows not seen in years.
