In May, digital asset inflows hit $2 billion and positive sentiment toward Ethereum (ETH) was confirmed.

Digital asset investment products experienced significant inflows in May, totaling $2 billion, according to CoinShares. These impressive figures contributed to annual inflows exceeding $15 billion for the first time on record.

Weekly influx and local contributions

This momentum continued as digital asset investment products recorded inflows totaling $185 million for the fourth week in a row. However, trading volume declined this week, falling to $8 billion from $13 billion the previous week.

The United States led the inflows with a net $130 million, while outflows from traditional ETF issuers increased to $260 million. Switzerland recorded the second-largest inflows this year at $36 million, while Canada reversed the trend with inflows of $25 million despite net outflows of $39 million in May.

Bitcoin and Ethereum Performance

Bitcoin (BTC) continued to attract investment with inflows totaling $148 million. On the other hand, short Bitcoin products experienced an outflow of $3.5 million, indicating a positive mood among ETF investors.

Ethereum (ETH) also saw a turnaround, recording inflows for the second week following SEC approval of a spot-based ETF scheduled to launch in July 2024. This represents a significant change in investor sentiment towards Ethereum previously experienced. A total outflow of $200 million occurred over 10 weeks. The positive news for Ethereum also benefited Solana (SOL), which saw an additional $5.8 million in inflows last week.

Other market dynamics

Despite the success of direct investments in digital assets, blockchain stocks have struggled, experiencing outflows of $7.2 million last week and $516 million this year.

Overall, the data indicates growing confidence in digital asset investment products, especially major cryptocurrencies such as Bitcoin and Ethereum. The approval of new financial products, such as spot-based ETFs, is likely to further strengthen this trend.

For more insight, check out the full report on the CoinShares blog.

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