Crypto treasury inflows fall to lowest level since 2024
Crypto treasury inflows collapsed to $180 million in May, the lowest since October 2024, down 95% from April's $4.4 billion. Bitcoin dominated inflows while non-Bitcoin assets barely contributed. Analysts argue the "raise-and-hold" model is obsolete as spot ETFs and NAV compression pressure treasury firms to generate active yield through staking or DeFi strategies rather than passive token accumulation.
Key takeaways
- 1Crypto treasury inflows plummeted to $180 million in May, down 95% from April's $4.4 billion, marking lowest level since October 2024.
- 2Bitcoin treasury firms contributed 98% ($177 million) of May inflows while non-Bitcoin assets like Ether barely contributed to DAT capital formation.
- 3Galaxy Digital and analysts argue passive 'raise-and-hold' model is obsolete; treasury firms must generate active yield through staking and DeFi strategies.
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Why it matters
The collapse signals institutional investors are abandoning passive crypto holdings for spot ETFs and demanding active yield generation, pressuring DAT companies to evolve their business models. For Indian retail investors, this reflects broader market shift toward yield-generating crypto strategies over simple token accumulation.
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