Digital asset funds saw a continued surge in inflows for the fourth consecutive week, as reported in the latest CoinShares “Digital Asset Fund Flows” report released on June 3. The report revealed that these funds received $185 million in inflows for the final week of May, contributing to a total monthly inflow of $2 billion. This brings the year-to-date capital inflow to over $15 billion.
The majority of the weekly inflows originated from the United States, amounting to $130 million. However, the report also highlighted outflows of $260 million from incumbent issuers in the United States.
Bitcoin (BTC) dominated the weekly inflows, attracting $148 million in investment flows. Conversely, short Bitcoin funds experienced $3.5 million in outflows for the week, resulting in a total outflow of $12.5 million for the month. This suggests that sentiment among Bitcoin investors remains positive.
Ether (ETH) witnessed weekly inflows of $33.5 million for the final week of May, with month-to-date inflows reaching $21.6 million. This signifies a reversal in investor sentiment, likely influenced by the approval of Ether exchange-traded funds (ETFs) in the United States. Previous weeks had seen a decline in investor sentiment, with $200 million in outflows from ETH exchange-traded products among institutional investors.
Solana’s SOL also experienced positive inflows, with $5.8 million for the week ending on May 31, bringing the monthly total to $24.8 million.
However, multi-asset funds performed poorly in May, with a weekly outflow of $2.7 million for the final week and a monthly outflow of $12.2 million. This indicates a lack of interest in these funds and products.
In related news, since the approval of Ether ETFs by the U.S. Securities and Exchange Commission on May 23, 2024, over $3 billion worth of ETH has been withdrawn from centralized exchanges. This suggests potential supply shock issues for the digital asset in the coming weeks and months as exchange balances reach historic lows.
For those interested in blockchain fundraising, there are several alternatives to ICOs, including crypto airdrops and IDOs. These options provide different approaches to raising funds in the crypto space.