Crypto for Advisors: Crypto ETFs Global crypto ETFs saw significant outflows in May, but diversified exposures showed relative resilience; we explore what the data signals for long-term investors.
What to know: In today’s newsletter, Joshua de Vos, from CoinDesk Research, analyzes May’s crypto outflows to explain what current market signals mean
Then, in “Ask an Expert,” Bryan Courchesne from DAiM addresses how investors can navigate the current market environment. Crypto ETFs: May Breakdown and What’s Next May ended two consecutive months of net inflows, with global crypto ETP flows swinging back to heavy redemptions. According to TrackInsight data, global digital-asset investment products recorded $2.39 billion in net outflows, against $1.79 billion of net inflows in April, as total assets under management fell to $141.1 billion from $158.7 billion a month earlier.
U.S.-listed vehicles accounted for almost the entire redemption, while flows outside the U.S., which had already cooled in April, turned modestly negative. The CoinDesk 20 Index (CD20), which captures a diversified cross-section of the top 20 digital assets, fell 1.11% in May after gaining 5.45% in April. The more concentrated CoinDesk 5 Index (CD5) declined 3.73% and bitcoin itself fell 3.56%, a sharp reversal from April, when bitcoin (up 11.87%) and the CD5 (up 9.91%) led a broad rally.