Record $2B Inflows for Crypto Investment Products in May, Ethereum Sees Turnaround

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 substantial $130 million pouring into crypto investment products. Switzerland also saw a notable surge in inflows, with the second-largest weekly inflow of the year totaling $36 million. Canada witnessed a significant turnaround, with inflows amounting to $25 million, a stark contrast to the net outflow of $39 million observed in May.

Bitcoin alone saw inflows of $148 million, while short Bitcoin products experienced outflows of $3.5 million. This indicates that the sentiment among ETF investors remains positive. Additionally, Ethereum, the world’s second-largest cryptocurrency, has seen a major turnaround in the last two weeks. After facing ten consecutive weeks of outflows totaling over $200 million, Ethereum witnessed two weeks of consecutive inflows. There are expectations that spot Ethereum ETFs will go live for trading by mid-July 2024.

The positive developments for Ethereum have also had a ripple effect on other cryptocurrencies, with $5.8 million worth of inflows in Ethereum Layer-1 competitor Solana (SOL). However, while direct investments in digital assets have been successful, blockchain equities have 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 and positive developments, with investors showing confidence in digital assets like Bitcoin and Ethereum. As the market evolves and new investment products emerge, the future of cryptocurrencies remains promising.