Ethereum and Bitcoin ETFs Lead the Pack as Top Performers of Last Week

Last week, exchange-traded funds (ETFs) linked to cryptocurrencies grabbed the spotlight, showcasing impressive gains despite a dip in crypto prices. Among them, Ethereum and Bitcoin stood out as top performers, captivating investors' attention amidst market volatility.

The surge in digital currency funds was notable, with eight out of the top 10 ETFs recording significant increases in value. Leading the charge were Ethereum futures funds, with standout performers including the ProShares Ether Strategy ETF (EETH), boasting nearly $70 million in assets and a remarkable 12% increase in value. Similarly, the Ark21Shares Active Ethereum Futures Strategy ETF (ARKZ) and the Bitwise Ethereum Strategy ETF (AETH) both saw a surge of 12% in the same period. Additionally, the combined bitcoin and ethereum futures fund, the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY), experienced an 11% uptick, according to data from etf.com.

While crypto ETFs soared, traditional funds experienced mixed fortunes, with notable inflows into the Vanguard 500 Index Fund (VOO) contrasting with significant outflows from the iShares Core S&P 500 ETF (IVV).

Despite the impressive performance of crypto ETFs, the broader market witnessed a decline in the two largest cryptocurrencies. Ethereum saw a 17% drop, while Bitcoin fell by 12% over the past week, according to CoinMarketCap.com.

Analysts caution against attributing the surge in crypto ETFs solely to the SEC approval process for a spot Ethereum exchange-traded fund. While multiple issuers have filed for such ETFs, analysts remain skeptical about their approval by the upcoming May deadline.

In addition to regulatory developments, investors are closely monitoring the imminent bitcoin halving, expected to occur this week. The anticipation surrounding this event has contributed to Bitcoin's impressive performance, which has surged by over 50% since the beginning of the year, buoyed in part by the approval of 10 spot bitcoin ETFs in mid-January, collectively amassing approximately $60 billion in assets.

Amidst the crypto boom, two carbon allowance ETFs, namely the iPath Series B Carbon ETN and the KraneShares European Carbon Allowance Strategy ETF, also experienced significant gains of around 10% last week, further diversifying the landscape of ETF investments.

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