US SEC-Approved Bitcoin ETFs See $1.1 Billion Inflows
Last week, US Securities and Exchange Commission (SEC)-approved Bitcoin exchange-traded funds (ETFs) received a total of $1.1 billion in inflows, according to a report by CoinShares. Since their launch on January 11, spot Bitcoin ETF products have accumulated a total of $2.8 billion in inflows. The increased institutional interest in Bitcoin is evident in its price, which reached over $50,000 on Monday. The recent influx of funds into Bitcoin has also contributed to the overall market capitalization of cryptocurrencies, pushing it close to $2 trillion. The United States accounted for the majority of the inflows, followed by Switzerland.
Crypto’s Next Inflows: Ethereum ETFs?
While Wall Street is starting to pay attention to crypto, the US lags behind other regions like Canada and Europe when it comes to trading crypto spot ETF products. This is due to regulatory uncertainties and the SEC’s strict approach under Chairman Gary Gensler. However, there is hope for Ethereum ETFs as the SEC is expected to make a decision on spot Ethereum ETF filings on May 23. The approval of Bitcoin ETFs earlier this year suggests that Ethereum ETFs could be next. However, the classification of Ethereum as a security by the SEC may pose challenges for approval.
Potential Obstacles for Ethereum ETF Approval
The SEC’s stance on Ethereum remains uncertain, as it has not explicitly stated whether it considers it a security or not. If Ethereum is deemed a security by the SEC, gaining approval for an ETF could be more difficult. Furthermore, the launch of an Ether custody service by Prometheum could prompt the SEC to clarify its position on Ethereum. Standard Chartered Bank predicts that May 23 could see a wave of ETF approvals, similar to what happened with Bitcoin earlier this year.
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