US Securities and Exchange Commission approvals for Ethereum ETFs have improved investor sentiment around the second-largest cryptocurrency asset, sending net inflows to a two-month high.
Ethereum (ETH) investment products recorded $36 million in inflows last week for the first time since March, according to a CoinShares report on May 28. The increase in net inflows comes as the US Securities and Exchange Commission (SEC) approved Forms 19b-4, signaling the green light for proposed rule changes that would allow national exchanges to list ETH exchange-traded funds.
News of the approval led to a 30% jump in Ethereum's price over the week, pushing its market capitalization to $450 billion and a market capitalization approaching $4,000 per token. This rise represents a positive shift in sentiment after 10 weeks of bearish activity.
Currency stocks Analysts said the rally was likely an early reaction to the approval news, but whether the price's uptrend will continue remains unclear as actual trading of the ETH ETFs is still weeks away.
Ethereum flows bounce with the broader investment market
The inflows of ETH vehicles coincided with a three-week series of digital asset investment products. Last week, investors raised $1.05 billion in net capital across several cryptocurrency-based funds.
While Ethereum has arguably taken the spotlight, most investments have flowed into US Bitcoin (BTC) ETFs. The region saw $1.03 billion in weekly inflows, largely comprised of BlackRock's $719 million iShares ETF.
Improving investor demand for these crypto investment channels has pushed cumulative YTD inflows to a new record high of $14.9 billion.
