Bitcoin
US Leads $2B Crypto Inflow in May as Ethereum ETF Sparks Investor Interest
Global digital asset investment products recorded their fourth consecutive week of inflows, totaling $185 million, according to weekly CoinShares. report.
The report stated that these inflows brought May’s total to $2 billion, bringing year-to-date inflows to more than $15 billion for the first time. However, trading volume fell to $8 billion from $13 billion the previous week.
Bitcoin, US leads
Investor interest in BTC remains largely positive as Bitcoin continues to drive flows into crypto investment products. Over the past week, the leading digital asset has seen inflows totaling $148 million, while short BTC products have seen outflows of $3.5 million.
Regionally, the US maintained its lead with inflows of $130 million, despite a $260 million outflow from Grayscale’s GBTC. During the period, BlackRock and Fidelity’s spot Bitcoin ETFs saw significant inflows totaling $475 million.
Chart showing ETP crypto flows by country. (Source: CoinShares)
Meanwhile, Switzerland recorded the second largest inflow of the year, worth 36 million dollars. Canada, recovering from the previous weeks’ outflows, contributed $25 million in inflows, despite a monthly net outflow of $39 million.
Remarkably, Hong Kong managed to curb its outflow trend, recording modest inflows of $1.7 million last week.
Approval of Ethereum ETF changes investor sentiment
Meanwhile, crypto products related to Ethereum recorded the second consecutive week of inflows, with investors investing US$34.5 million in these financial instruments. Last week, ETH recorded its largest inflows of $36 million since March.
CoinShares attributed this turnaround to the Securities and Exchange Commission’s (SEC) decision to approve 19b-4 filings for several Ethereum ETF spot products. Prior to this approval, ETH was on a 10-week run of outflows totaling $200 million.
Several experts have predicted that Ethereum ETFs could begin trading as early as July, but Bloomberg ETF analyst James Seyffart he said there is no definitive timeline for the launch because the financial regulator has not yet approved the issuers’ S-1 filings.
Meanwhile, positive sentiments in Ethereum have also increased investments in other large-cap altcoins such as Solana, which recorded inflows of US$5.8 million. Other assets like Chainlink, XRP, and Litecoin saw smaller inflows of less than $1 million.