TL;DR
- Record revenue of $2 billion in May for digital asset investment products.
- Continued investments in Bitcoin, with a total of $148 million in inflows.
- Ethereum sees a positive shift in investor sentiment following SEC approval for a spot-based ETF, with two consecutive weeks of inflows.
Investment in digital assets continues its rise, marking a significant milestone with record inflows of $2 billion in May for investment products in this sector.
The continued flow of capital has driven cumulative inflows for the year to more than $15 billion, establishing an unprecedented milestone in the digital asset sector.
However, despite this impressive figure, trading volumes have seen a decline over the week, falling to $8 billion compared to $13 billion recorded the previous week.
Bitcoin remains the main beneficiary of this bullish trend, attracting a total of $148 million in inflows during the period analyzed.
However, short Bitcoin products recorded fund outflows totaling $3.5 million, although these figures remain modest compared to overall inflows, suggesting positive sentiment among ETF investors.
The most notable change in Digital Assets has occurred in Ethereum
Following the SEC’s approval of a spot-based ETF, scheduled to launch in July 2024, Ethereum has seen two consecutive weeks of inflows.
This change in investor sentiment is especially significant considering the previous ten weeks of capital outflows, which totaled $200 million.
The positive news for Ethereum has also had an impact on Solana, which saw additional inflows worth $5.8 million last week.
Despite the success in digital asset investments, blockchain-related stocks have not had the same luck.
Blockchain stocks suffered outflows worth $7.2 million last week and a total of $516 million so far this year.
This contrast between the performance of digital assets and blockchain stocks highlights the growing disparity in the investment market.
While digital assets like Bitcoin and Ethereum have attracted a steady flow of capital, showing significant growth in terms of investments and market capitalization, blockchain-related stocks have faced a less favorable trend.
This discrepancy can be attributed to several factors, including risk perception, market maturity, and limited understanding of blockchain technology among traditional investors.
Furthermore, the market for blockchain-related stocks may be influenced by industry-specific factors such as government regulation, technological challenges, and competition among emerging companies.
These elements can lead to higher volatility in blockchain stocks compared to more established digital assets.
