Digital asset funds saw a continued increase in inflows for the fourth consecutive week, as reported in the CoinShares “Digital Asset Fund Flows” report released on June 3. In the final week of May, these funds received $185 million in inflows, contributing to a total monthly inflow of $2 billion. This brings the year-to-date inflow of capital to over $15 billion.
The majority of the weekly inflows came from the United States, with $130 million entering the market. However, the report also highlighted outflows of $260 million from incumbent issuers in the United States.
Bitcoin (BTC) dominated the weekly inflows, attracting $148 million in investment flows. On the other hand, short Bitcoin funds experienced outflows of $3.5 million, resulting in a total outflow of $12.5 million for the month. This suggests that sentiment among Bitcoin investors remains positive.
Ether (ETH) witnessed weekly inflows of $33.5 million in the final week of May, and a total inflow of $21.6 million for the month. This signifies a shift in investor sentiment, likely influenced by the approval of Ether exchange-traded funds (ETFs) in the United States. In previous weeks, institutional investors showed decreased interest in ETH, resulting in $200 million in outflows from ETH exchange-traded products.
Inflows into Solana’s SOL were also positive, with $5.8 million entering the funds in the week ending on May 31, and a total inflow of $24.8 million for the month.
However, multi-asset funds performed poorly in May, with weekly outflows amounting to $2.7 million in the final week, and a total outflow of $12.2 million for the month.
Since the approval of Ether ETFs on May 23, 2024, by the U.S. Securities and Exchange Commission, over $3 billion worth of ETH has been moved from centralized exchanges. This suggests potential supply shock issues for the digital asset in the coming weeks and months as exchange balances reach lows not seen in years.
In related news, here are 7 alternatives to initial coin offerings (ICOs) for blockchain fundraising, including crypto airdrops and initial DEX offerings (IDOs).