May sees $2bn digital asset inflows; Ethereum (ETH) sentiment 💪🚀

Summary: Digital Asset Inflows Surge to $2 Billion in May

Bitcoin and Ethereum witnessed positive sentiment shifts as digital asset investment products experienced significant inflows, totaling $2 billion in May. The United States led the inflows, with Bitcoin attracting $148 million in investments and Ethereum recording its second week of inflows after the SEC’s approval of a spot-based ETF. Despite blockchain equities struggles, direct investments in digital assets are on the rise, reflecting growing confidence among investors.

Weekly Inflows and Regional Contributions

Digital asset investment products saw inflows of $185 million in the fourth consecutive week.
Trading volumes decreased to $8 billion from the previous week’s $13 billion.
The United States led with net inflows of $130 million, while Switzerland and Canada also saw significant inflows.

Bitcoin and Ethereum Performance

Bitcoin received $148 million in inflows, with positive sentiment among ETF investors.
Ethereum had a second week of inflows, signaling a shift in investor sentiment post-SEC approval for a spot-based ETF.
Solana also benefited with $5.8 million inflows following Ethereum’s positive news.

Other Market Dynamics

Blockchain equities struggled with $7.2 million outflows last week and $516 million outflows this year.
Investor confidence is growing in major cryptocurrencies like Bitcoin and Ethereum, with the approval of new financial instruments like spot-based ETFs expected to further boost the trend.

For more detailed insights, the full report is available on the CoinShares blog.

Hot Take:

Investor confidence in digital assets is on the rise, with Bitcoin and Ethereum experiencing positive sentiment shifts and significant inflows. The approval of new financial instruments like spot-based ETFs is expected to further fuel this trend, reflecting a growing interest in major cryptocurrencies among investors. Despite blockchain equities struggles, direct investments in digital assets are gaining traction, indicating a shift in investor preferences towards digital assets.