The crypto market is showing signs of a bullish resurgence, with reports of a formidable $2 billion in inflows for May alone.
Alongside this positive trend, Ethereum (ETH) has seen a notable turnaround in investor sentiment because the long-awaited spot exchange-traded funds (ETFs) for the market’s second-largest cryptocurrency received approval from the US regulators last week.
Record-Breaking Month For Crypto Products
In keeping with a recent report from research firm CoinShares, digital asset investment products consistently attracted inflows through the 4 weeks, amassing a complete of $185 million.
May proved to be particularly fruitful, with inflows surpassing $2 billion. This achievement marks the primary time on record that year-to-date inflows have exceeded the $15 billion mark, highlighting investors’ growing interest within the crypto market.
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Most inflows originated from america, with a net inflow of $130 million. Nonetheless, it’s price noting that ETF issuers experienced outflows amounting to $260 million.
Switzerland also witnessed a major uptick in investor interest, recording its second-largest weekly inflow this yr at $36 million. Meanwhile, Canada witnessed a positive turnaround, with inflows of $25 million, despite experiencing a net outflow of $39 million in May.
Ethereum Rebounds With $200M Inflows
Per the report, Bitcoin (BTC) continued to dominate the crypto market, attracting inflows totaling $148 million. Conversely, short-Bitcoin products witnessed one other week of outflows, amounting to $3.5 million, suggesting that sentiment amongst ETF investors stays largely positive for the leading cryptocurrency.
Ethereum, then again, experienced a notable change in investor sentiment following the Securities and Exchange Commission’s (SEC) approval of a spot-based ETF that is predicted to launch in July 2024.
CoinShares notes that this approval marked a turning point for Ethereum, which had endured ten weeks of outflows totaling $200 million. Interestingly, the positive news for Ethereum had a ripple effect on Solana (SOL), which received a further $5.8 million in inflows last week.
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While direct investments in crypto assets have been thriving, blockchain equities faced a unique scenario. Previously week alone, blockchain equities witnessed outflows of $7.2 million.
The report notes that for the reason that starting of the yr, the sector has suffered outflows totaling $516 million, reflecting a difficult period for blockchain-related stocks.
The 1-D chart shows ETH’s sideways price motion between $3,700 and $3,900 over the past 10 days. Source: ETHUSD on TradingView.com
On the time of writing, Ethereum has seen a 4% price drop within the last week, leading to a trading price of $3,770. Nonetheless, the second-largest cryptocurrency available on the market still holds gains of 21%, as recorded within the 30 days.
Featured image from DALL-E, chart from TradingView.com