Digital asset funds have witnessed a continuous influx of capital for the fourth straight week, as stated in the recent CoinShares Digital Asset Fund Flows report published on June 3. The report reveals that these funds received $185 million in weekly inflows for the last week of May, contributing to a total monthly inflow of $2 billion. This brings the year-to-date capital inflow to over $15 billion. The majority of the weekly inflows originated from the United States, amounting to $130 million, although there were notable outflows of $260 million from incumbent issuers in the U.S. Bitcoin (BTC) mainly drove the weekly inflows, attracting $148 million in investment flows. Conversely, short Bitcoin funds experienced $3.5 million in weekly outflows, totaling $12.5 million for the month. This could suggest a bullish sentiment prevailing among Bitcoin investors.

Ether (ETH) also saw positive weekly inflows amounting to $33.5 million during the last week of May, with month-to-date inflows reaching $21.6 million. This marked a reversal in investor sentiment, likely influenced by the approval of Ether exchange-traded funds (ETFs) in the United States. In contrast, previous weeks had witnessed a decline in sentiment among institutional investors, resulting in $200 million outflows from ETH exchange-traded products.

Flows into Solana (SOL) funds remained positive, with weekly inflows reaching $5.8 million by May 31, accumulating to a monthly total of $24.8 million. However, multi-asset funds performed poorly in May, recording weekly outflows of $2.7 million for the final week and $12.2 million in monthly outflows.

The United States Securities and Exchange Commission (SEC) approved Ethereum exchange-traded funds on May 23, 2024, in the U.S., despite Ethereum exchange-traded products being accessible in other regions. Since the approval, more than $3 billion worth of ETH has been transferred from centralized exchanges. This movement implies potential supply constraints for the digital asset in the near future as exchange balances drop significantly, reaching levels not seen in years.