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Key Insights:
- Ethereum gains $205M in inflows after Pectra upgrade and leadership change.
- Bitcoin inflows slow as Fed signals high-rate caution and global uncertainty.
- U.S. ETFs add 26,729 BTC in May, led by institutional accumulation.
Digital asset investment products saw $785 million in inflows last week, marking the fifth consecutive week of net gains. Year-to-date inflows now total $7.52 billion, surpassing February’s previous high of $7.2 billion.
According to CoinShares, exchange-traded product (ETP) assets under management also rose alongside inflows. The United States led regional flows with $681 million, followed by Germany ($86.3 million) and Hong Kong ($24.2 million). Sweden and Canada recorded outflows of $16.3 million and $13.5 million, respectively.
Ethereum Drives Weekly Flows as Sentiment Rebounds
Last week, Ethereum received $205 million, raising its YTD total to $757 million. Interest from investors has increased due to two major events.
The Pectra upgrade for the Ethereum network was launched on May 7, making it the biggest change since the 2022 Merge. Meanwhile, the Ethereum Foundation chose Tomasz Stańczak to be co-executive director.
With the Pectra upgrade, EIP‑7251 allowed the validator cap to rise to 2,048 ETH and EIP‑7702 added smart-wallet capabilities to make accounts easier to use.
Stańczak has a background in leading core development for Ethereum. Before, he focused on research for stateless clients which are designed to cut down the amount of data that validators must store. This move is considered a way to improve the ability to scale the company.
Additionally, Ted Pillows mentioned that ETH ETFs had a net outflow of $39.8 million for the month, suggesting that other factors are influencing the price.
Bitcoin Still Dominates, But ETF Momentum Slows
In the past week, $557 million was invested into Bitcoin investment products. The number is lower than it was in previous weeks and could be because of comments from Federal Reserve Chair Jerome Powell.
Powell stated that rate cuts would only be considered if there is sustained proof of lower inflation which caused investors to become less interested in risk assets.
According to HODL15Capital, U.S. Bitcoin ETFs have added 26,729 BTC in May. Even though February’s record of 116,561 BTC added was not reached, the fact that institutions are still buying suggests they are confident about the future. In January and March, the network added 49,428 BTC and 65,456 BTC, respectively.
For the fourth week in a row, short-Bitcoin products attracted $5.8 million, suggesting that some traders are still protecting themselves against losses.
iShares Leads, Grayscale and Fidelity Lose Ground
Among ETP providers, iShares led with $908 million in weekly inflows. Their month-to-date flows now total $2.98 billion, and $9.04 billion year-to-date.
Grayscale posted $42 million in weekly outflows and $1.62 billion year-to-date. Fidelity saw $122 million in outflows last week despite holding $20 billion in assets.
ARK 21Shares had $69 million in weekly outflows but remains net positive for the year at $159 million. Bitwise, CoinShares, and 21Shares AG recorded small outflows, while ProShares added $11 million.
Solana and multi-asset funds were the only categories with negative weekly flows, losing $0.9 million and $2.9 million, respectively. Meanwhile, Sui added $9.3 million, bringing its May total to $21 million.
Fed Signals and Global Uncertainty Add Mixed Sentiment
Despite inflows, macro uncertainty remains high. Powell said the April 0.5% drop in PPI came amid high real interest rates and unresolved global supply issues.
Concerns over U.S.–China trade resurfaced after Treasury Secretary Scott Bessent warned tariffs may return if negotiations fail. These developments increased volatility across traditional and crypto markets.
Ethereum attracted the most flows last week, thanks to its upgrade and leadership change. However, the May 30 PCE inflation report may shape the Fed’s next policy steps and affect investor risk appetite.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
