Institutional and retail investors showed massive renewed interest in cryptocurrencies in May, with record inflows of $2 billion into digital asset funds.
A record $2 billion inflow into crypto funds in May 2024
The report weekly report CoinShares reports entries 2 billion dollars on the crypto market in May. Bitcoin was the main driver of this wave of investment, alone attracting $148 million in new capital in the last week of the month.
This renewed interest seems to indicate renewed bullish investor sentiment towards the queen of cryptos.
Short Bitcoin funds have also recorded outflows of $3.5 million over the week bringing the monthly total to $12.5 million. Yet another sign of the optimism surrounding Bitcoin’s prospects.
The SEC’s approval of Ether ETFs has largely contributed to this boom. After a few difficult weeks, Ethereum has seen investors return to the market. with $33.5 million in weekly inflows and 21.6 million over the month.
This dramatic turnaround in sentiment contrasts with the $200 million outflows suffered earlier on ETH-backed exchange-traded products.
Overall positive flows into other Altcoins
In addition to the two main cryptos, other altcoins have also benefited from this renewed appetite for digital assets. Like Solana, whose funds have racked up $24.8 million in monthly inflows, including 5.8 million in the last week.
Only multi-asset funds fared badly in May, with monthly outflows of $12.2 million.
In all, investment funds dedicated to digital assets recorded $185 million in inflows last week, and no less than $2 billion over the month of May. Bringing the total since the beginning of the year to over $15 billion!
Never before have institutional and retail investors shown such an appetite for the world of cryptos. What’s in store for June?
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
