May Sees Surge in Crypto ETFs and Regulatory progress
In may, the crypto world saw a surge in interest, especially in Bitcoin and Ethereum ETFs. This was fueled by positive regulatory news. Many big players poured money into these ETFs as Bitcoin hit a new all-time high.
A Binance Research report, published on June 5, noted that despite market ups and downs, crypto stayed strong. The U.S. trade policy uncertainty caused some market jitters. This led to a significant rise in Bitcoin and Ethereum ETFs.
Despite market volatility, crypto markets remained resilient. The U.S. trade policy uncertainty caused some market jitters. This led to nearly $1 billion in liquidations following the U.S.-U.K. trade agreement. An additional $183 million in liquidations occurred after the U.S. announced a tariff pause on the European Union.
Interest in Bitcoin ETFs remained strong. These products attracted $5.2 billion in net inflows, the highest level since November 2024. Notably, these inflows coincided with Bitcoin hitting its all-time high of $111,970 on May 22.
ETF inflows were largely supported by positive regulatory momentum. In the U.S. senate,the GENIUS Act gained traction,proposing the first stablecoin regulation framework in the contry. The report also cited growing regulatory support for stablecoins in Hong Kong.
Among ETF products, BlackRock’s iShares Bitcoin Trust (IBIT) led the field, attracting nearly 100% of the total net inflows in May. In contrast, Grayscale’s GBTC saw $320 million in net outflows, indicating a potential winner-takes-all trend.
DeFi was the only major sector to outperform Bitcoin in May, recording 19% growth versus BTC’s 11.1% gain. Additionally,total value locked in defi protocols reached its highest level since early February.
Bitcoin also experienced a surge in demand from corporate treasuries. As of May, 116 public companies held 809,100 BTC. Bitcoin’s all-time high, along with favorable regulatory developments, has intensified corporate interest. Companies like Trump Media reportedly invested billions in BTC to enhance investor appeal.
