Following the approval of Ethereum ETFs by the U.S. SEC, investor confidence in the second-largest cryptocurrency surged, resulting in a two-month high in net inflows.
Last week, Ethereum (ETH) investment products saw an influx of $36 million for the first time since March, as reported by CoinShares on May 28. The increase in net inflows coincided with the SEC’s approval of 19b-4 forms, paving the way for proposed rule changes that would allow national exchanges to list spot ETH ETFs.
This approval news caused a 30% spike in Ethereum’s price over the week, driving its market cap to $450 billion and inching closer to $4,000 per token. This surge marked a shift in sentiment after a bearish trend lasting 10 weeks.
Analysts at CoinShares believe that the price surge was likely an initial reaction to the approval news, but the future of the price trend remains uncertain as actual spot ETH ETF trading is still a few weeks away.
In addition to Ethereum, last week saw a three-week streak of net capital inflows into digital asset investment products. Investors poured $1.05 billion into various crypto-based funds, with most of the investments flowing into U.S. Bitcoin (BTC) ETFs. The region saw $1.03 billion in weekly inflows, with BlackRock’s iShares ETF receiving $719 million.
The increased investor interest in these crypto investment options has driven year-to-date flows to a new record high of $14.9 billion.
In contrast to the U.S., Hong Kong is reportedly considering staking in spot Ethereum ETFs, signaling a growing global interest in cryptocurrency investment opportunities.