Ethereum vehicles attract $36m after ETF greenlight

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As an experienced analyst, I believe the recent approval of Ethereum ETFs by the U.S. SEC has significantly improved investor sentiment towards this second-largest crypto asset. The inflows into Ethereum investment products, including $36 million last week, are a clear indication of this positive shift.

The approval of Ethereum ETFs by the US Securities and Exchange Commission enhanced investors’ confidence in crypto’s second-largest asset, resulting in a surge of over $2 billion in investments during the past two months.

As an analyst, I’m excited to share that Ethereum investment products experienced a significant inflow of $36 million in the past week, marking the first time this amount has been reached since March, based on the latest CoinShares report released on May 28. This surge in net inflows can be attributed to the recent approval of 19b-4 forms by the U.S. Securities and Exchange Commission (SEC). These forms serve as a green light for proposed rule changes that would allow national exchanges to list spot Ethereum ETFs, potentially paving the way for increased investor interest in Ethereum.

The announcement of approval caused Ethereum’s price to surge by 30% over the past week, reaching a market capitalization of $450 billion and coming close to $4,000 per token. This significant increase in value signaled a turnaround in investor sentiment following ten weeks of downturn.

The analysts from CoinShares believe that the recent Ethereum price increase is probably an initial response to favorable news, but it’s uncertain if this trend will continue as actual Ethereum Spot ETF trading is yet to begin.

Ethereum inflows bounce with broader investment market

Last week, there was an inflow of approximately $1.05 billion from investors into various Ethereum-focused funds, coinciding with a three-week long trend of increased investment in digital asset products.

As a researcher studying the cryptocurrency market, I’ve observed that despite Ether gaining significant attention, the majority of investments were directed towards U.S. Bitcoin (BTC) Exchange-Traded Funds (ETFs). In the past week, these funds received approximately $1.03 billion in inflows. Notably, a substantial portion of this sum, around $719 million, was contributed by BlackRock’s iShares ETF.

The increased appetite from investors for cryptocurrency investment platforms has collectively brought in a fresh record high of $14.9 billion as of this year.

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2024-05-28 18:10