The recent approval of Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has injected renewed optimism into the cryptocurrency market, with Ethereum investment products witnessing a significant uptick in net inflows. According to a report by CoinShares released on May 28, Ethereum (ETH) investment products attracted a staggering $36 million in inflows last week, marking the highest level since March and signaling a notable shift in investor sentiment towards the second-largest cryptocurrency.

The approval of 19b-4 forms by the SEC, paving the way for national exchanges to list spot ETH ETFs, served as a catalyst for the surge in Ethereum's price, which experienced a remarkable 30% jump over the week. This surge propelled Ethereum's market capitalization to $450 billion and brought its token value close to the $4,000 mark, marking a significant turnaround following a prolonged period of bearish activity spanning ten weeks.

While CoinShares analysts attribute the surge in Ethereum investments to an initial reaction to the approval news, the continuation of the price uptrend remains uncertain, as actual spot ETH ETF trading is still several weeks away.

The surge in Ethereum investments coincided with a broader trend of increasing capital inflows into digital asset investment products, with investors pouring $1.05 billion in net capital across various crypto-based funds over the past week. Despite Ethereum stealing the spotlight, the majority of investments flowed into U.S. Bitcoin (BTC) ETFs, with the region experiencing $1.03 billion in weekly inflows, driven largely by BlackRock's iShares ETF, which attracted $719 million in investments.

This surge in investor demand for crypto investment channels has propelled cumulative year-to-date flows to a new record high of $14.9 billion, underscoring the growing institutional interest and confidence in the long-term potential of cryptocurrencies as a legitimate asset class. As regulatory clarity continues to evolve and institutional adoption gains momentum, the cryptocurrency market appears poised for further growth and maturation in the coming months.