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ethereum ETF approvals by the US SEC improved investor sentiment around the second-largest cryptocurrency asset, leading to a two-month high in net inflows.
ethereum (eth) investment products saw $36 million in inflows last week for the first time since March, according to a May 28 CoinShares report. The increase in net inflows comes as the U.S. Securities and Exchange Commission (SEC) approved Forms 19b-4. , giving the green light to proposed rule changes allowing domestic exchanges to list spot eth ETFs.
News of the approval caused a 30% increase in the price of ethereum over the week, raising its market capitalization to $450 billion and approaching $4,000 per token. This rise marked a change in positive sentiment after 10 weeks of bearish activity.
CoinShares Analysts said the surge was likely an early reaction to the approval news, but a continuation of the bullish price trend is still unclear as actual spot eth ETF trading is still weeks away.
ethereum Inflows Bounce with Broader Investment Market
Inflows of eth vehicles coincided with a three-week streak for digital asset investment products. Last week, investors accumulated $1.05 billion in net capital in various cryptocurrency-based funds.
While Ether arguably stole the spotlight, the majority of investments flowed into US bitcoin (btc) ETFs. The region saw $1.03 billion in weekly inflows, largely made up of BlackRock's iShares ETF with 719 million dollars.
Improved investor demand for these cryptocurrency investment channels has raised accumulated flows so far this year to a new record of $14.9 billion.
