Investors have cast a favorable eye on Ethereum following the U.S. Securities and Exchange Commission’s approval of Ethereum exchange-traded funds (ETFs), leading to a significant uptick in net inflows reaching a two-month high. This bullish trend was underpinned by a recent CoinShares report which indicated that Ethereum (ETH) investment products secured $36 million in inflows last week—the first occurrence of such a volume since March.
These inflows are a direct consequence of the SEC’s go-ahead for proposed rule changes to permit the listing of spot ETH ETFs on national exchanges, as denoted through the approval of 19b-4 forms. This nod from the SEC has instigated a remarkable 30% spike in Ethereum’s price over the past week, catapulting its market cap to a staggering $450 billion and bringing the value close to $4,000 per token. This price surge marks a significant sentiment shift following a long bearish period spanning 10 weeks in the crypto market.
Despite the influx of capital into Ethereum-based investment products, analysts from CoinShares approach the continuing uptrend with caution. The surge in Ethereum’s value may have been an initial reaction to the SEC’s approval news; however, the sustainability of this increase is uncertain, given that the actual trading of spot ETH ETFs is still several weeks away.
The revived optimism is not limited to Ethereum. Last week witnessed a $1.05 billion injection of net capital into various crypto-based funds, signaling enhanced investor demand for crypto investment channels. This was prominently observed in U.S. Bitcoin (BTC) ETFs, which pulled in $1.03 billion of that weekly inflow. A substantial portion of these investments was concentrated in BlackRock’s iShares ETF, which alone amassed $719 million.
The remarkable growth in funds underscores a banner year for the sector, with cumulative year-to-date flows for crypto investment channels reaching an all-time high of $14.9 billion. This milestone accentuates the strong and sustained investor interest within the cryptocurrency investment domain. As the industry awaits the commencement of actual spot ETH ETF trading, all eyes will remain on the market’s movements to gauge whether the current upswing heralds a lasting change in investor sentiment or if it’s a temporary shift spurred by regulatory news.
