Despite a broader slowdown in crypto markets, Ethereum-backed investment funds witnessed a significant surge last week. As investors await the U.S. Federal Reserve’s interest rate decision in June, ETH products attracted a net inflow of $296 million, signaling renewed market confidence.
Strongest Weekly Performance Since the 2024 U.S. Election
Ethereum-linked exchange-traded products (ETPs) emerged as the top performers in the crypto asset class. The $296 million inflow recorded over the past week represents the most substantial single-week capital movement into Ethereum funds since the 2024 presidential election in the United States.
Ethereum products now account for over 10.5% of the total assets under management (AUM) across all crypto-based ETPs. Furthermore, this marked the seventh consecutive week of positive inflows for ETH, suggesting that investor sentiment has seen a meaningful recovery.
ETH Price Outlook: Key Levels to Watch
Market analysts forecast that Ethereum could fluctuate between $2,400 and $2,800 in the near term. While trade uncertainties and deflationary risks might restrain upward momentum, continued network upgrades and steady ETF inflows could help ETH test the $2,700 level.
However, in the case of a broader market correction, support around $2,300 may come under pressure.
Bitcoin Funds Struggle Amid Investor Caution
Although total inflows across all digital asset investment vehicles reached $286 million last week — bringing the seven-week total above $11 billion — Bitcoin products saw net outflows of $56 million. This marked the second consecutive week of capital exiting Bitcoin-related funds.
Analysts attribute this trend to investor hesitancy ahead of the Federal Open Market Committee’s (FOMC) upcoming meeting on June 18. Traders are reportedly adopting a “wait-and-see” approach until the Fed offers more clarity on its monetary policy direction.
Current data from the CME FedWatch tool shows a 99.9% probability that the central bank will leave interest rates unchanged. Still, many believe the first rate cut of 2025 could be a major catalyst for Bitcoin’s next breakout.
Crypto VC Activity Hits 2025 Low
In contrast to the strong inflows into Ethereum, crypto venture capital activity saw a steep drop. Only 62 funding rounds were completed in May, marking the lowest monthly total so far in 2025. The combined value of these rounds amounted to just $909 million, reflecting a more cautious stance among early-stage investors.
This content does not constitute investment advice. The markets involve high risk and it is important that you do your own research before making any investment decisions.
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