In May 2025, the crypto market witnessed a significant uptick in institutional investments in Bitcoin and Ethereum ETFs, coinciding with reaching new price highs.
Key Trends in the Crypto Industry
The main trends in the cryptocurrency sector in May were linked to the growing interest of institutional investors in funds focused on Bitcoin and Ethereum. Regulatory changes played a crucial role in this process.
Liquidation Dynamics and ETF Investments
Despite the volatility induced by uncertainty regarding U.S. trade policy, interest in Bitcoin ETFs remained high. In May, these funds attracted $5.2 billion in net inflows, the highest level since November 2024. However, nearly $1 billion in liquidations occurred following the trade agreement between the U.S. and the U.K.
Growth of DeFi and Corporate Interest
The DeFi sector outperformed with a growth of 19% compared to Bitcoin’s 11.1%. By May, public companies held 809,100 BTC, increasing corporate interest significantly.
Thus, May marked a pivotal month for the crypto market, highlighting significant interest in ETFs and DeFi assets, alongside corporate investments in Bitcoin, indicating a maturing market.
