The approval of Ethereum (ETH) ETFs by the U.S. Securities and Exchange Commission (SEC) has significantly improved investor sentiment, leading to a two-month high in net inflows for crypto’s second-largest asset. According to a CoinShares report on May 28, Ethereum investment products saw $36 million in inflows last week, marking the first significant increase since March.
The inflows followed the SEC’s approval of 19b-4 forms, signaling the green light for proposed rule changes that would allow national exchanges to list spot ETH ETFs. This news led to a 30% surge in Ethereum’s price over the week, pushing its market cap to $450 billion and bringing the price per token close to $4,000. This surge represents a positive shift in sentiment after 10 weeks of bearish activity.
CoinShares analysts attributed the surge to early reactions to the approval news, though they cautioned that the continuation of this uptrend remains uncertain, with actual spot ETH ETF trading still weeks away.
Ethereum Inflows Reflect Broader Market Trends
The increase in ETH vehicle inflows coincided with a broader positive trend in digital asset investment products, marking a three-week streak. Last week, investors injected $1.05 billion in net capital into various crypto-based funds. While Ethereum attracted significant attention, most investments flowed into U.S. Bitcoin (BTC) ETFs. The U.S. market experienced $1.03 billion of the weekly inflows, with BlackRock’s iShares ETF contributing $719 million.
The heightened investor demand for these crypto investment channels has pushed cumulative year-to-date flows to a record high of $14.9 billion, underscoring the growing confidence in the crypto market following the regulatory approval of ETFs.
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