May’s crypto investment surge saw Ethereum take the spotlight with an impressive $33.5 million in inflows, re-igniting the market’s enthusiasm in the wake of the U.S. Securities and Exchange Commission’s (SEC) green light for a spot Ethereum ETF. In a recent financial uptick, the cryptocurrency sector witnessed a total of $2 billion pouring into investment products, highlighting a robust rebound in investor sentiment particularly around Ethereum.
The approval of an Ethereum ETF by the SEC has reversed the previously bearish outlook for the second-largest cryptocurrency by market cap. After an arduous period of ten weeks witnessing consistent outflows, Ethereum-based investment products have finally caught a break, marking two successive weeks where capital has flowed in rather than out.
These recent gains are part of a broader picture showing a positive shift across the sector. In the last week alone, Ethereum’s $33.5 million inflow has been a significant contributor to the month’s total inflow of $21 million for Ethereum investment products. Digital asset investment products overall have enjoyed a fourth consecutive week of inflows, totaling an impressive $185 million.
The bullish trend in May resulted in an aggregate of $2 billion in inflows for crypto investment products, propelling the year-to-date inflows to surpass the $15 billion mark. Bitcoin, often leading the charts, had a substantial $148 million in inflows. Interestingly, in a contrarian play, products betting against Bitcoin’s price saw outflows of $3.5 million, hinting at a declining interest in short positions for the leading digital currency.
Altcoins besides Ethereum also experienced investment inflows. Notably, Solana led the altcoin pack attracting $5.8 million in inflows. However, the sector wasn’t entirely rosy; blockchain equities saw a downswing, facing a total of $7.2 million in outflows last week and a considerable $516 million throughout the current year.
Geographically, the flow of funds into crypto investment products showed clear regional preferences. The United States stood out prominently with weekly inflows of $130 million, with Switzerland ($36.8 million) and Canada ($24.6 million) trailing behind as substantial contributors in their own right.
In conclusion, the influx of funds into crypto investment products, and Ethereum’s resurgence, underscore an implicitly growing upbeat investor outlook towards the market. Ethereum’s pivot in fortune appears closely tied to the SEC’s approval of a spot Ethereum ETF, affirming the regulatory milestone as a catalyst for renewed interest and potentially setting the stage for more positive developments in the cryptocurrency investment space.
