Crypto Investment Products Record $2B Inflows in May, Ethereum Sees Turnaround
In a recent report by CoinShares, it has been revealed that crypto investment products experienced a significant influx of $185 million in the last week, marking the fourth consecutive week of inflows. The total inflows for the month of May reached an impressive $2 billion, contributing to a total of over $15 billion in inflows for the year 2024 so far.
The United States led the way in terms of inflows last week, with a total of $130 million pouring into crypto investment products. Switzerland also saw a notable surge in inflows, with the second-largest weekly inflow of the year amounting to $36 million. Canada, on the other hand, experienced a turnaround with inflows totaling $25 million, a stark contrast to the net outflow of $39 million observed in May.
Bitcoin alone attracted inflows of $148 million, while short Bitcoin products saw outflows of $3.5 million. This indicates that the sentiment among ETF investors remains positive. Additionally, Ethereum, the world’s second-largest cryptocurrency, witnessed a major turnaround in the last two weeks. After facing ten consecutive weeks of outflows totaling over $200 million, Ethereum saw two weeks of consecutive inflows. There are expectations that spot Ethereum ETFs will be available for trading by mid-July 2024.
This positive development for Ethereum also had a ripple effect on other cryptocurrencies, with $5.8 million worth of inflows recorded in Ethereum Layer-1 competitor Solana (SOL). However, blockchain equities faced challenges, with outflows totaling $7.2 million last week and $516 million so far this year.
On May 28, the Bitcoin transaction value in Dollar terms reached a yearly high of $25 billion. Approximately 367,000 BTC were transferred on the blockchain on that day, marking the highest volume of BTC moved since June 13, 2022. Despite a lower volume of Bitcoin moved, the price of BTC on May 28 was around $69,374, significantly increasing the total value of transactions to approximately $25.5 billion.
Crypto market analysts remain bullish on Bitcoin’s future, with popular trader Peter Brandt predicting that BTC price could reach $130,000 by the end of the year. Brandt’s analysis suggests that Bitcoin has the potential to reach between $130,000 and $150,000 by August or September 2025 if it maintains a trajectory similar to previous bullish runs.
Overall, the crypto market continues to see strong inflows into investment products, with Ethereum leading the way in terms of a turnaround in investor sentiment. As digital assets gain more traction, the future looks promising for the cryptocurrency market.