Strategy Watch #4

Crypto Insight Summary: Glassnode published the fourth edition of its "Strategy Watch" monthly report on May 22, 2026, analyzing fund-level performance and capital flows across digital assets through six sections covering institutional flows, fund/SMA returns, DeFi yield, on-chain vaults, manager positioning, and allocation updates. Bitcoin capital flows improved from -$6.9 billion at the start of April to nearly neutral at -$0.7 billion by month-end, while stablecoin inflows accelerated from +$1.8 billion to +$5.4 billion, indicating rotation into dollar-denominated on-chain instruments. Ethereum remained in persistent net outflow, closing April at -$1.6 billion, though its ETF flows notably reversed from -135,000 ETH in early April to +140,600 ETH by month-end, with ETH DAT flows reaching +408,600 ETH. Bitcoin ETF and DAT flows stayed positive, closing at +26,300 BTC and +58,800 BTC respectively. DeFi TVL on Ethereum deteriorated sharply, with total ETH locked falling from approximately $54 billion to $44.9 billion and outflows peaking at Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Mixed flows with BTC inflows and ETH outflows, but ETF flows show improving sentiment for both.