Crypto ETFs Attract Record Inflows Amid regulatory Progress
In May, the crypto market saw a surge in institutional interest, notably in Bitcoin (BTC) and Ethereum (ETH) ETFs. This trend was fueled by positive regulatory developments. According to a Binance Research report from June 5, bitcoin reached a new all-time high, coinciding with strong inflows into crypto ETFs.
Despite market volatility caused by U.S. trade policy uncertainties, crypto markets remained resilient. The U.S.-U.K. trade agreement and a tariff pause on the European union led to nearly $1.2 billion in liquidations. However, interest in Bitcoin ETFs remained strong, attracting $5.2 billion in net inflows, the highest as November 2024.
Regulatory momentum supported ETF inflows. The GENIUS act in the U.S.Senate proposed the first stablecoin regulation framework.Hong Kong also showed growing regulatory support for stablecoins.
Among ETFs, BlackRockās iShares Bitcoin Trust (IBIT) led with nearly 100% of total net inflows. Grayscaleās GBTC, however, saw $320 million in outflows, suggesting a winner-takes-all trend.
DeFi outperformed Bitcoin, growing by 19% compared to BTCās 11.1% gain. The total value locked in DeFi protocols reached its highest level as February.
Corporate treasuries also increased their Bitcoin holdings. By May, 116 public companies held 809,100 BTC. Companies like Trump Media invested billions in BTC to boost investor appeal.
