Investments in cryptocurrency have increased massively, with a weekly cumulative amount of $185 million for the last week of May. The recently published CoinShares “Digital Asset Fund Flows” report, as of June 3, revealed that monthly investment fund inflows were impressive, hitting $2 billion and consequently pushing the capital inflow year to date to over $15 billion.
From that perspective, the United States is taking the lead, accounting for $130 million of the weekly inflows. The report also indicates incumbent issuer outflows of $260 million. Moreover, Bitcoin emerged as the largest recipient of investments, claiming $148 million in investment flows. Meanwhile, short Bitcoin funds saw outflows of $3.5 million per week.
Ether (ETH) also experienced a strong comeback, with its weekly inflows reaching around $33.5 million and month-to-date inflow rising slightly above $21.6 million respectively. This reversal in investor sentiment can be as a result of Ether exchange-traded funds (ETFs) being approved finally by the United States recently.
Apart from Ethereum, Solana’s SOL showed steady growth as well, with its weekly inflow valued at approximately $5.8 million and its monthly increase standing at $24.8 million.
Despite the overall positive trends, multi-asset funds struggled in May, recording weekly outflows of $2.7 million and monthly outflows of $12.2 million.
The approval of Ether ETFs on May 23, 2024, has significantly impacted the market. Since then, more than $3 billion worth of ETH has moved out of centralized exchanges, raising potential supply-shock concerns as exchange balances hit multi-year lows.
