The cryptocurrency market is showing signs of a bullish resurgence, with reports of an impressive $2 billion in inflows in May alone.
In addition to this positive trend, Ethereum (ETH) has seen a clear change in investor sentiment as a long-awaited spot listed funds (ETF) for the market’s second-largest cryptocurrency received approval from U.S. regulators last week.
A record month for crypto products
According to a recent one report from research firm CoinShares, digital asset investment products consistently attracted inflows over a four-week period, raising a total of $185 million.
May was particularly fruitful, with the inflow of funds exceeding USD 2 billion. This achievement is the first in history revenues since the beginning of the year exceeded the USD 15 billion mark, which highlights the growing interest of investors in the cryptocurrency market.
Most of the inflow came from the United States, with a net inflow of $130 million. However, it is worth noting that ETF issuers experienced outflows of $260 million.
Switzerland also saw a significant boost in investor interest, recording the second-largest weekly inflows this year at $36 million. Meanwhile, Canada experienced a positive change, with an inflow of $25 million, despite the crisis it was experiencing net outflow in May to USD 39 million.
Ethereum bounces back with $200 million in inflows
Bitcoin (BTC) continued to dominate the cryptocurrency market, attracting a total of $148 million in inflows, according to the report. The other way round, tiny Bitcoin products witnessed another week of outflows of $3.5 million, suggesting sentiment among ETF investors remains largely positive for the leading cryptocurrency.
Ethereum, on the other hand, has seen a noticeable shift in investor sentiment following the Securities and Exchange Commission (SEC) approval of a cash-backed ETF set to launch in July 2024.
CoinShares notes that this approval marked a turning point for Ethereum, which saw outflows totaling $200 million over ten weeks. Interestingly, the positive news for Ethereum was widely reported Solana (SOL), which received $5.8 million in additional proceeds last week.
While direct investments in crypto assets are booming, blockchain stocks have faced a different scenario. Last week alone, blockchain stocks saw an outflow of $7.2 million.
The report noted that the sector has experienced outflows totaling $516 million since the beginning of the year, reflecting a complex period for blockchain stocks.
At the time of writing, Ethereum has dropped 4% in the past week, bringing the trading price to $3,770. However, the second largest cryptocurrency in the market still maintains gains of 21% as recorded over the 30-day period.
Featured image from DALL-E, chart from TradingView.com
