Institutional capital continues to pour into crypto investment products at record pace, with global exchange-traded products (ETPs) amassing $10.8 billion in inflows so far this year. The surge, led primarily by Bitcoin and Ethereum funds, comes as several major token vesting schedules are set to expire in June, releasing an estimated $3.3 billion worth of digital assets into circulation. While the influx of new capital highlights growing investor confidence, the upcoming token unlocks may reintroduce short-term volatility and reignite scrutiny over project tokenomics and market supply dynamics. Crypto ETPs Hit $10.8B in Inflows as Institutional Demand Soars Past Records Cryptocurrency investment products have seen an explosive resurgence in demand, with institutional inflows breaching the $10 billion threshold for the year, according to the latest report by European digital asset manager CoinShares. For the week ending May 24, global crypto exchange-traded products (ETPs) attracted $3.3 billion in net inflows, one of the largest weekly totals in history, pushing 2024’s year-to-date (YTD) cumulative figure to a staggering $10.8 billion. The surge highlights a notable revival in investor appetite for digital assets amid rising macroeconomic uncertainty and renewed confidence in flagship cryptocurrencies like Bitcoin and Ethereum. Crypto ETP flows by asset as of May 23, 2025 (in millions of US dollars) (Source: CoinShares) Bitcoin investment products dominated last week’s flows, accounting for $2.9 billion of the total $3.3 billion, or roughly 88% of all weekly inflows. According to CoinShares head of research James Butterfill, this wave of capital helped push the total assets under management (AUM) in crypto ETPs to a record $187.5 billion, albeit briefly, before markets experienced minor corrections. The inflows into Bitcoin products came as BTC soared above the $110,000 mark on May 22, marking a new milestone for the digital asset. While the rally attracted long-term capital, it also fueled demand for short-Bitcoin products, which saw $12.7 million in inflows, the largest weekly inflow into short-BTC ETPs since December 2024. This divergence indicates that some investors are preparing for near-term volatility even as the long-term outlook remains bullish. Ethereum Continues Five-Week Winning Streak Post-Upgrade Ethereum (ETH) ETPs also recorded strong performance, pulling in $326 million for the week—its fifth consecutive week of inflows. The continued momentum follows the successful rollout of the highly anticipated Pectra upgrade on May 7, which improved transaction efficiency and scalability on the Ethereum network. Investor confidence in Ethereum has been steadily growing in the wake of developments related to a potential Ethereum spot ETF in the United States. Alongside the Ethereum ecosystem’s technical improvements, this has led to a shift in sentiment favoring sustained capital allocation to ETH-based investment products. In stark contrast, XRP-based ETPs experienced a historic setback. After an 80-week streak of inflows, XRP products saw $37.2 million in outflows, the largest single-week capital flight on record for the asset class. The reversal came despite two potentially bullish developments: the growing speculation around the launch of a spot XRP ETF in the US, and the open interest in XRP futures climbing to $2.2 billion. The disconnect between the token’s price underperformance and these tailwinds has caused some institutional investors to reassess short-term exposure. Butterfill suggested that the withdrawal could indicate waning confidence in XRP's immediate price trajectory rather than a broader dismissal of its long-term viability. Crypto ETP Market Rebounds From February Correction CoinShares’ latest data shows the market has not only recovered but has surpassed levels seen before the February–March 2025 correction. During that period, crypto investment products experienced nearly $7 billion in outflows following a sharp pullback in digital asset prices. That drawdown had initially dampened enthusiasm, but by mid-May, inflows had returned with $785 million added in a single week, pushing the YTD total to $7.5 billion by May 16. Underlying the record-breaking inflows is a broader shift in institutional strategy as macroeconomic pressures mount. Butterfill pointed to the recent downgrade of the US credit outlook by Moody’s and a spike in treasury yields as catalysts pushing investors toward alternative asset classes like digital assets. The reemergence of crypto as a preferred destination for capital, especially within structured products such as ETFs and ETPs, underscores the growing sophistication of the digital asset market and the deepening role of institutions in driving this growth. Outlook: Sustained Growth or Volatility Ahead? While the recent inflows have been overwhelmingly positive for market sentiment, the rise in short-BTC positions suggests that not all investors believe the upward momentum will continue unchecked. With Ethereum’s ecosystem undergoing active upgrades and Bitcoin nearing new psychological levels, the coming weeks will be a critical test for crypto’s resilience. Moreover, with speculation mounting around future ETF approvals for Ethereum and potentially XRP, volatility may increase as regulatory signals begin to shape new investor narratives. Regardless, the crypto ETP landscape continues to break records and draw billions in capital—an unmistakable signal that institutional crypto adoption is not just back, but accelerating. $3.3 Billion in Crypto Tokens Set to Flood Market in June as Vesting Schedules Expire Meanwhile, digital assets worth $3.3 billion are poised to enter circulation in June 2025 as vesting periods for several major crypto projects come to an end, according to new data from crypto vesting tracker Tokenomist. While the figure marks a 32% month-on-month decline from May’s $4.9 billion in token unlocks, the influx is still expected to have a measurable impact on market liquidity, investor sentiment, and potentially token prices. Vesting schedules play a crucial role in managing the distribution of crypto tokens—often for team members, early investors, foundations, or community grants. These locked tokens are typically released either gradually through “linear unlocks” or all at once via “cliff unlocks.” Of the $3.3 billion to be released in June, approximately $1.4 billion will be unlocked through cliff mechanisms, while $1.9 billion will be gradually released through linear emissions, signaling a mix of immediate and ongoing market supply pressure. One of the most closely watched token unlocks in June is from Metars Genesis (MRS)—a metaverse-focused NFT project. The project is scheduled to unlock $193 million worth of MRS tokens on June 21, which it says will be directed toward a new partnership focused on artificial intelligence. Since March, Metars Genesis has been releasing 10 million tokens monthly, and has already seen nearly $1 billion in tokens enter circulation. Analysts will be monitoring how the AI partnership impacts token utility and demand in light of the expanded supply. Sui to Release $160M in Tokens on June 1 Layer-1 blockchain project Sui (SUI) is also scheduled for a major unlock. On June 1, the project will unlock 44 million SUI tokens worth roughly $160 million. The majority of these tokens will be allocated to the Mysten Labs treasury, early contributors, and the community reserve. Notably, more than $70 million worth of these tokens is set aside for Series B investors, prompting speculation over potential profit-taking. Tokenomist data showing Sui’s vesting schedule (Source: Tokenomist) Since its inception, Sui has already unlocked 3.3 billion tokens worth over $12 billion, which constitutes about 33% of its total token supply. However, Tokenomist data reveals that another 5.22 billion SUI tokens—valued at nearly $20 billion—remain without a scheduled release date, leaving uncertainty around future dilution risk. Other high-profile projects are also set for sizable unlocks in June: Fasttoken (FTN) will release 20 million tokens valued at $88 million, allocated to the project’s founders. LayerZero (ZRO), a cross-chain interoperability protocol, plans to unlock 25 million tokens worth $71 million, primarily directed toward core contributors and strategic partners. Aptos (APT) is slated to release 11.31 million tokens worth $61 million. The tokens will be distributed to the core team, community, foundation, and early investors. ZKsync (ZK) will emit over 760 million tokens worth $49 million, primarily targeted at team members and early backers. These unlocks are likely to reignite discussions around tokenomics, vesting transparency, and the implications for long-term holders as new supply enters open markets. Market Impact: Supply Pressure or Maturation? While June’s $3.3 billion in unlocks is lower than May’s record, the sudden liquidity—especially from cliff unlocks—can potentially weigh on token prices, particularly if recipients choose to liquidate their allocations. However, some analysts argue that token unlocks also represent a maturation milestone for projects, reflecting continued development, new product launches, and evolving utility.
