Digital Asset Funds Enjoy Fourth Week of Inflows, Boosted by Bitcoin, Ether, and Solana
Summary:
The CoinShares Digital Asset Fund Flows report reveals a fourth consecutive week of inflows into digital asset funds. During the last week of May, $185 million flowed into these funds, contributing to a total of $2 billion for the month. Bitcoin recorded the highest weekly inflow of $148 million, while Ether garnered $33.5 million. Solana also saw an increase in inflows. However, multi-asset funds witnessed outflows in May. The approval of Ether exchange-traded funds in the U.S. likely spurred a boost in investor sentiment. Meanwhile, approximately $3 billion worth of ETH has moved from centralized exchanges, signaling potential supply issues in the future.
Digital asset portfolios witnessed their fourth successive week of capital influx, as demonstrated in the CoinShares Digital Asset Fund Flows report published on June 3. The report established that the final week of May saw a weekly inflow of $185 million into digital asset portfolios, escalating the monthly tally to $2 billion and, consequently, pushing the annual accumulated inflow past the $15 billion mark. A significant chunk of the weekly influx originated from the United States, accounting for a hefty $130 million. However, the report also highlighted a counterflow of $260 million in the U.S. Bitcoin (BTC) was notably at the forefront of weekly inflows, attracting $148 million investment inflow. Concurrently, Bitcoin-focused funds reported a weekly leakage of $3.5 million, elevating the monthly tally to a total of $12.5 million in outflows, suggesting a positive sentiment among Bitcoin investors. Source: CoinShares Weekly influx into digital asset portfolios.
Ether (ETH) registered weekly inflows of $33.5 million in the last week of May and $21.6 million in monthly inflows. This shift corroborates a rejuvenated investor sentiment, likely triggered by the endorsement of Ether exchange-traded funds (ETFs) in the United States, overruling the previous weeks' slump among institutional investors that witnessed $200 million worth outflows from ETH exchange-traded products. Solana (SOL) funds experienced a similar surge registering inflows of $5.8 million for the week ending on May 31 and a monthly total of $24.8 million.
However, May showed poor performance from multi-asset portfolios with a recorded weekly outflow of $2.7 million during the final week, leading to $12.2 million monthly outflows from multi-asset portfolios and products.
Related: Ethereum's exit from digital exchanges amounts to $3B following US ETF endorsement.
On May 23, 2024, the U.S. Securities and Exchange Commission sanctioned the concept of Ethereum exchange-traded funds, implying that despite Ethereum exchange-traded products being accessible in other regions, a hefty $3 billion worth of ETH has migrated from central exchanges, hinting at possible supply deficits for the digital asset as exchange balances plummet to minimums unseen in prior years.
Published At
6/3/2024 9:36:45 PM
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