Crypto Craze: Bitcoin and Ethereum ETFs Soar Amid Regulatory Wins

May was wild in the crypto world, with institutions pouring cash into Bitcoin and Ethereum ETFs thanks to some sweet regulatory vibes.

Bitcoin (BTC) and Ethereum (ETH) exchange traded funds were on fire, especially when Bitcoin smashed its all-time high in May. A hot-off-the-press Binance Research report from June 5 said crypto markets were holding strong, even with all the rollercoaster rides caused by U.S. trade policy drama.

The volatility was no joke, wiping out nearly a billion bucks in liquidations after the U.S. and U.K. inked a trade deal. And when the U.S. hit pause on EU tariffs, another $183 million went up in smoke.

But get this—despite the liquidation frenzy, Bitcoin ETFs were still the talk of the town, pulling in a whopping $5.2 billion in net inflows. That's the biggest haul since November 2024, and it all went down when Bitcoin hit its record-breaking $111,970 on May 22.

Those ETF inflows got a boost from the regulatory green light. In the U.S. Senate, the GENIUS Act was making waves, pushing for the country's first stablecoin rules. And over in Hong Kong, stablecoins were getting some love too, according to the report.

DeFi Steals the Show from Bitcoin: Binance Research

When it came to ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) was the king, grabbing almost all the net inflows in May. Meanwhile, Grayscale’s GBTC saw $320 million walk out the door, hinting at a possible winner-takes-all scenario.

DeFi was the only sector that outshined Bitcoin in May, growing a solid 19% while BTC only gained 11.1%. Plus, the total value locked in DeFi hit its highest point since early February.

Bitcoin also saw a rush from corporate treasuries. By May, 116 public companies were holding 809,100 BTC. With Bitcoin's record high and those favorable regulations, corporate interest went through the roof. Companies like Trump Media were throwing billions into BTC, trying to dazzle investors.