Our Exclusive Market Review
In May, Bitcoin concluded the month at $67,500, while Ethereum's relative value to Bitcoin increased to 0.057, marking its best performance against Bitcoin since August 2022. This surge was significantly influenced by speculative optimism regarding the potential approval of a spot Ethereum ETF in the US.
Mid-month, the probability of a spot ETH ETF approval rose from 25% to 75%, sparking a 20% increase in Ethereum's value and narrowing the Grayscale Ethereum Trust discount to 10%. Subsequently, the SEC approved Form 19b-4 for several Ethereum ETF issuers, although they must still secure effectiveness for their S-1 registration statements before trading can begin.
The market also saw a surge in real-world asset tokenization, reaching new peaks and indicating a broader trend towards blockchain integration in asset management.
Additionally, Bitcoin surpassed one billion transactions processed and reached a record hashrate, demonstrating continued network growth and strength. Bitcoin's correlation with equities rose, with the 90-day correlation reaching 0.17 after hitting a multi-year low of 0.01 in March. Crypto markets rallied due to softer US CPI data but remained within recent trading ranges. Bitcoin ETFs received approval to list on the London Stock Exchange.
The U.S. House of Representatives passed the FIT21 Act, aiming to create a clear regulatory framework for cryptocurrencies, shifting oversight from the SEC to the CFTC.