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Digital Asset Investment Products See Fourth Consecutive Week of Inflows, Attracting $2 Billion in May

Ruholamin Haqshanas
Last updated: | 2 min read
Digital Asset Investment Products See Fourth Consecutive Week of Inflows

Digital asset investment products saw $185 million in inflows last week, marking the fourth consecutive week of positive investment trends.

In total, these products attracted $2 billion in inflows in May, propelling year-to-date inflows past the $15 billion mark, reaching an all-time high, according to a recent report from CoinShares.

Although the weekly volumes experienced a decline, dropping to $8 billion compared to the previous week’s $13 billion, the consistent inflows demonstrate the sustained interest in digital assets among investors.

US Dominates in Terms of Inflows

The United States dominated the inflows, attracting a net total of $130 million.

However, incumbent ETF issuers faced outflows amounting to $260 million.

Switzerland witnessed its second-largest weekly inflows this year, amounting to $36 million, while Canada experienced a turnaround with inflows of $25 million, despite a net outflow of $39 million in May.

Bitcoin remained a popular choice among investors, with inflows totaling $148 million.

Conversely, short-bitcoin products experienced outflows of $3.5 million, indicating that sentiment among ETF investors remains positive.

Ethereum saw a significant shift in investor sentiment, recording a second consecutive week of inflows.

This change followed the SEC’s approval of a spot-based ETF, scheduled for launch in July 2024.

Prior to this positive development, Ethereum had experienced ten consecutive weeks of outflows, amounting to $200 million.

The positive news surrounding Ethereum has also had a positive impact on Solana, which witnessed an additional inflow of $5.8 million last week.

In contrast to the success of direct investments in digital assets, blockchain equities faced challenges.

Last week, these equities witnessed outflows of $7.2 million, contributing to a total outflow of $516 million this year.

Bitcoin Spot ETFs See 14 Consecutive Days of Net Inflows

Bitcoin spot ETFs continue to attract significant investor interest as they record fourteen consecutive days of net inflows.

On May 31, the total net inflow for Bitcoin spot ETFs reached $48 million, according to data from SoSo Value.

Grayscale ETF GBTC experienced over $124 million in outflows on that day, which was offset by BlackRock’s $169 million inflows.

Last week, BlackRock’s iShares Bitcoin Trust took the lead as the world’s largest fund for Bitcoin, accumulating nearly $20 billion in total assets since its listing in the United States earlier this year.

Bitcoin ETFs have emerged as one of the most successful categories of ETFs, amassing a total of $58.5 billion in assets.

These funds have experienced remarkable growth, fueled by the quadrupling of Bitcoin’s value since the start of last year.

Despite the success of Bitcoin ETFs, Vanguard Group, the world’s second-largest asset manager, has firmly stated its lack of plans to offer any crypto-related products, emphasizing the cautious approach taken by some institutions in the face of digital asset market volatility.