Crypto-focused investment products have attracted substantial investments for the fourth week in a row, amassing $185 million in inflows. Throughout May, total inflows reached $2 billion, and since the beginning of the year, a remarkable $15 billion has been invested. Despite a drop in weekly trading volumes from $13 billion to $8 billion, investor interest and confidence in cryptocurrencies remain robust.
Geographical Distribution of Investments
An analysis of the geographical distribution shows that the bulk of the investments originated from the United States, with net inflows amounting to $130 million. This was countered by $260 million in outflows from ETF issuers within the market.
Switzerland recorded its second-largest inflow of the year, totaling $36 million, while Canada experienced a notable recovery with $25 million in inflows, reversing a net outflow of $39 million in May.
Bitcoin and Ethereum Inflows
Bitcoin maintained its dominance with $148 million in inflows, indicating sustained positive sentiment among ETF investors. Conversely, short-focused Bitcoin products experienced outflows of $3.5 million, underscoring a bullish outlook on Bitcoin.
Ethereum also saw inflows for the second consecutive week following the SEC’s approval of a spot-based ETF set for a July 2024 launch. This marked a notable shift for Ethereum, which had previously faced $200 million in outflows over ten weeks. This positive sentiment extended to other cryptocurrencies like Solana, which saw $5.8 million in inflows last week, as well as XRP, Cardano, Chainlink, and Litecoin.
Key Takeaways for Investors
– **U.S. remains a major source of crypto investments.**
– **Switzerland and Canada show significant investment rebounds.**
– **Bitcoin continues to attract substantial inflows.**
– **Positive ETF news boosts Ethereum and related cryptos.**
– **Blockchain-focused stocks face ongoing outflows.**
Despite strong performances in direct crypto investments, blockchain-focused stocks have not mirrored this success, experiencing $7.2 million in outflows last week and $516 million for the year. This highlights a distinct difference in investor confidence between direct crypto asset investments and related stocks.
