The highly-anticipated Spot Ethereum ETFs have debuted with a fairly remarkable $2.2 billion worth of inflows. Indeed, a new CoinShares report highlights the funds entering into the ETH investment products, with Grayscale’s $285 million in net outflows balancing out its performance.
The figure is the largest Ether inflow since late 2022. Moreover, the newly launched products led to a 542% increase in investment into ETH exchange-traded products. The overall net outflows from Grayscale’s $1.5 billion Ethereum Trust has dampened the positive performance of the products.
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Ethereum ETFs and Political Shift Drive Crypto Investment Inflows
In 2024, crypto-based ETFs have dominated conversation in finance. The US has seen Bitcoin and Ethereum receive the investment vehicles as the crypto market continues to enter the mainstream debate. Although the ETH arrival has been something of a mixed bag, its already turned some heads.
A CoinShares report notes that the newly arrived Spot Ethereum ETFs have derived $2.2 billion worth of inflows. Additionally, the report notes that Bitcoin also attracted more than $3.6 billion over the past month. Year-to-date, BTC investment options have totaled $19 billion,w which is a new record figure.
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The report notes that speculation surrounding US elections and BTC integration has driven that interest. Donald Trump recently discussed making BTC a strategic reserve asset for the country. His speech at Bitcoin Conference 2024 has many looking differently at the asset’s future.
In the year so far, total investments in the asset class have already surpassed $20 billion. Moreover, trading volumes for all crypto have reached an all-time high for May. That figure was driven by the anticipated arrival of the ETH ETFs, which hit the market just one week ago.
The Ether ETf has yet to drive the crypto’s price to monumental heights. The second-largest cryptocurrency has decreased more than 4.5% in the last seven days, according to CoinMarketCap. Yet, it is riding a 1% increase in the last day to its current $3,316 price.