The cryptocurrency market is showing signs of a bullish recovery, with reports of a staggering $2 billion in inflows for May alone.
Along with this positive trend, Ethereum (ETH) has seen a notable shift in investor sentiment as a long-awaited cryptocurrency. Exchange-traded funds Exchange-traded funds (ETFs) for the market's second-largest cryptocurrency received US regulatory approval last week.
A record-breaking month for cryptocurrency products
According to a hadith a report From research firm CoinShares, the digital asset investment product consistently attracted inflows over the four weeks, raising a total of $185 million.
May proved particularly productive, with inflows exceeding $2 billion. This achievement represents the first time this has been recorded Inflows since the beginning of the year It has crossed the $15 billion mark, highlighting the growing interest of investors in the cryptocurrency market.
Related reading
Most of the inflows came from the United States, where net inflows reached $130 million. However, it is worth noting that ETF issuers saw outflows of $260 million.
Switzerland also saw a spike in investor interest, recording its second-largest weekly inflow this year at $36 million. Meanwhile, Canada has seen a positive turnaround, with inflows reaching $25 million, although it has seen a decline. net flow $39 million in May
Ethereum rebounds with $200 million inflows
According to the report, Bitcoin (BTC) continued to dominate the cryptocurrency market, attracting inflows totaling $148 million. On the contrary, Short Bitcoin Products It saw another week of outflows, amounting to $3.5 million, suggesting that sentiment among ETF investors remains largely positive for the leading cryptocurrency.
On the other hand, Ethereum has seen a noticeable change in investor sentiment following the Securities and Exchange Commission (SEC) approval of its spot ETF that is expected to launch in July 2024.
CoinShares notes that this approval represents a turning point for Ethereum, which has endured ten weeks of outflows totaling $200 million. Interestingly, positive news for Ethereum had a ripple effect Solana (SOL), which received $5.8 million in additional inflows last week.
Related reading
While direct investments in crypto assets have been booming, blockchain stocks have faced a different scenario. Last week alone, blockchain stocks saw outflows worth $7.2 million.
The report notes that since the beginning of the year, the sector has suffered outflows totaling $516 million, reflecting a difficult period for blockchain-related stocks.
At the time of writing, the price of Ethereum has seen a 4% decline in the past week, resulting in a trading price of $3,770. However, the second largest cryptocurrency on the market still posted gains of 21%, as recorded in 30 days.
Featured image of DALL-E, chart from TradingView.com