Ethereum ETF approvals by the U.S. SEC improved investor sentiment around crypto’s second-largest assets, leading to a two-month high in net inflows. 

Ethereum (ETH) investment products recorded $36 million in inflows last week for the first time since March, according to a CoinShares report on May 28. The increase in net inflows comes as the U.S. Securities and Exchange Commission (SEC) approved 19b-4 forms, signaling a greenlight for proposed rule changes allowing national exchanges to list spot ETH ETFs.

The approval news led to a 30% jump in Ethereum’s price over the week, pushing its market cap to $450 billion market cap and nearing a $4,000 per token. This sruge marked a positive sentiment shift after 10 weeks of bearish activity. 

CoinShares analysts said the surge was likely an early reaction to approval news, but a continuation of the price uptrend remains unclear with actual spot ETH ETF trading still weeks away.

Ethereum inflows bounce with broader investment market

ETH vehicle inflows coincided with a three-week streak for digital asset investment products. Last week, Investors piled $1.05 billion in net capital across several crypto-based funds. 

While Ether arguably took the spotlight, most investments flowed into U.S. Bitcoin (BTC) ETFs. The region experienced $1.03 billion of the weekly inflows, largely comprised of BlackRock’s iShares ETF with $719 million. 

Improved investor demand for these crypto investment channels has raised cumulative year-to-date flows to a new record high of $14.9 billion.