Institutions Invest $2 Billion in Crypto with Bitcoin Leading at $148 Million Inflows

• Institutional investors directed substantial capital into crypto products, amassing a total of $2 billion last month.
• This trend is highlighted in CoinShares’ latest Digital Asset Fund Flows report, which reveals significant weekly inflows.
• “Digital asset investment products experienced inflows for the fourth consecutive week, with May totaling $2 billion, driving year-to-date inflows to exceed $15 billion for the first time.”

Institutions injected $2 billion into crypto assets in May, marking a historic year-to-date inflow exceeding $15 billion.

Impressive Inflows Garnered by Digital Asset Investment Products

According to the recent report from CoinShares, digital asset investment products saw substantial inflows amounting to $185 million during the last week alone. This marks the fourth consecutive week of positive inflows, contributing to a staggering $2 billion total for the month of May. This remarkable performance has pushed the year-to-date inflows to surpass $15 billion, a milestone achieved for the first time in the history of digital assets.

Geographical Breakdown of Crypto Inflows

Notably, the US was the leading contributor, bringing in $130 million in inflows. Meanwhile, Switzerland and Canada followed with $36 million and $25 million, respectively. Canada’s performance is particularly notable for its dramatic reversal from the previous month’s outflows. This regional distribution underscores the growing global interest and confidence in digital assets.

Bitcoin Leads the Pack with Substantial Inflows

Investor sentiment towards Bitcoin (BTC) remained robust, as evidenced by the $148 million inflow last week. Bitcoin’s strong performance underpins the broader bullish outlook on cryptocurrency. However, it’s important to note that short-BTC products saw an outflow of $3.5 million during the same period. These figures highlight the ongoing strategic allocations by investors, indicating a preference for long-term BTC positions.

Ethereum and Other Altcoins See Positive Sentiment Shift

Ethereum (ETH) also saw a significant change in investor sentiment, recording $33.5 million in inflows last week. This marks a notable reversal following a 10-week stretch of outflows totaling $200 million. This renewed confidence in Ethereum has also positively impacted Solana (SOL), which garnered $5.8 million in inflows. Other altcoins like Chainlink (LINK), XRP, Litecoin (LTC), and Cardano (ADA) experienced modest inflows of $1 million, $0.8 million, $0.6 million, and $0.3 million, respectively.

Conclusion

The robust inflows into digital asset investment products reflect increasing institutional confidence and a positive shift in market sentiment. With significant investments flowing into Bitcoin and Ethereum, and renewed interest in various altcoins, the crypto market is poised for further growth. As digital assets continue to gain traction, investors should remain informed and vigilant, navigating this dynamic landscape with strategic foresight.