Approval of ETF leads to Ethereum funds raising $36m.
The recent approval of Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) has had a positive impact on investor sentiment towards the second-largest cryptocurrency. As a result, there has been a significant increase in net inflows, reaching a two-month high.
According to a report from CoinShares on May 28, Ethereum investment products saw $36 million in inflows last week, marking the first time since March. This surge in net inflows can be attributed to the SEC’s approval of 19b-4 forms, which indicates that proposed rule changes allowing national exchanges to list spot Ethereum ETFs have been given the green light.
The news of the approval led to a 30% surge in Ethereum’s price over the week, pushing its market cap to $450 billion and approaching a value of $4,000 per token. This significant increase in value signifies a shift in sentiment towards a more positive outlook after 10 weeks of bearish activity.
Analysts at CoinShares believe that the surge in price is likely an early reaction to the approval news, and it remains uncertain whether the upward trend will continue once actual spot Ethereum ETF trading begins in a few weeks.
In addition to the surge in Ethereum inflows, there has been a three-week streak of increased investment in digital asset products. Last week, investors poured $1.05 billion in net capital into various crypto-based funds. While Ethereum may have garnered attention, the majority of investments went into Bitcoin ETFs in the U.S. The region saw $1.03 billion in weekly inflows, with BlackRock’s iShares ETF accounting for $719 million of that amount.
The growing demand from investors for these crypto investment channels has resulted in a new record high of cumulative year-to-date flows, reaching $14.9 billion.
It is worth noting that unlike the United States, Hong Kong is also considering the possibility of staking in spot Ethereum ETFs, highlighting the global interest and potential for further growth in this sector.
