The U.S. SEC’s approval of the Ethereum ETF improved investor sentiment towards crypto’s second largest asset, leading to two-month-high net inflows.
EthereumETHAccording to CoinShares’ report of May 28,, investment products saw a $36 million increase in flows last week. This is the first such increase since March. This increase is due to the U.S. Securities and Exchange Commission’s (SEC) approval of 19b-4 forms. The SEC has given its green light for proposed rule amendments allowing exchanges nationwide to list spot Ethereum ETFs.
This news triggered a 30 percent increase in Ethereum’s price during the past week. It pushed its market capital to $450 billion and brought it close to $4,000 per token. After 10 weeks of negative sentiment, this sruge was a sign that the market had turned positive.
CoinShares The analysts believe the recent surge in the price of ETH ETF is likely a reaction to the approval news. However, the future direction of this trend remains uncertain as the actual spot ETH ETF trades are still several weeks off.
Ethereum Inflows Bounce with Broader Investment Market
Inflows of ETH vehicles coincided with a streak of three weeks for investment in digital assets. Investors have pumped $1.05 billion into crypto-based fund last week.
Most investments went to U.S. Bitcoin, not Ether.BTC) ETFs. BlackRock’s iShares ETF, with $719 millions of weekly inflows to the region, was responsible for $1.03billion of those.
The improved investor demand has pushed the cumulative flows year-to date to a record of $14.9 billion.
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Source: crypto.news