Digital asset funds experienced significant inflows in May 2024, marking a robust period for the cryptocurrency market. According to the latest CoinShares report, the total inflows for the month amounted to $2 billion, with Bitcoin leading the charge. Here’s a breakdown of the key highlights from the report.

In the last week of May alone, crypto funds saw $185 million in inflows. This marked the fourth consecutive week of positive inflows, underscoring the growing interest and confidence in digital assets.

Bitcoin Dominates with $148 Million in Inflows

Bitcoin (BTC) continued to attract substantial investment, with $148 million flowing into BTC-focused funds in the final week of May. This trend reflects a bullish sentiment among investors, despite some short Bitcoin funds experiencing outflows.

Interestingly, short Bitcoin funds recorded $3.5 million in outflows during the same week, totaling $12.5 million for the month. This suggests that investors are optimistic about Bitcoin’s future performance.

Ether Sees Positive Turnaround

Ethereum (ETH) also enjoyed a positive shift in investor sentiment. Weekly inflows for ETH amounted to $33.5 million, contributing to month-to-date inflows of $21.6 million. This change is likely influenced by the approval of Ether exchange-traded funds (ETFs) in the United States.

The approval of Ether ETFs by the U.S. Securities and Exchange Commission on May 23, 2024, has played a significant role in this turnaround. Following the approval, over $3 billion worth of ETH was moved from centralized exchanges, indicating potential supply constraints in the near future.

Solana Gains Investor Attention

Solana (SOL) also attracted positive attention, with weekly inflows reaching $5.8 million by the end of May. The monthly total for Solana funds stood at $24.8 million, reflecting strong investor interest.

In contrast to the positive performance of individual cryptocurrencies, multi-asset funds did not fare as well. These funds saw weekly outflows of $2.7 million and monthly outflows totaling $12.2 million. This indicates that investors might be more confident in single-asset investments during this period.

The consistent inflows into digital asset funds throughout May highlight the growing confidence in the cryptocurrency market. Bitcoin remains the dominant player, but other cryptocurrencies like Ether and Solana are also gaining significant traction. As the market continues to evolve, these trends could signal further growth and opportunities in the crypto investment space.