Crypto sentiment stayed weak this week as spot ETF selling pressure continued across both Bitcoin and Ethereum products. The Crypto Fear & Greed Index read 28 on May 22, keeping the market in Fear and down sharply from 43 last week. Bitcoin ETF flows were negative from Monday through Thursday, while Ethereum ETFs also posted steady redemptions across the same stretch. The move suggests investors are still reducing exposure even as prices attempted to stabilize, leaving the market cautious rather than fully risk-on.
Kevin Warsh Sworn In as Fed Chair
Kevin Warsh was sworn in as the new chair of the Federal Reserve on May 22, replacing Jerome Powell at a delicate moment for markets. Warsh takes over as the central bank faces persistent inflation pressure, political demands for lower rates, and renewed uncertainty tied to the U.S. conflict with Iran. For crypto investors, the change matters because Fed policy remains one of the biggest drivers of dollar liquidity, risk appetite, and ETF demand. Warsh has previously argued for a reform-oriented Fed and has supported the case for lower rates, but policymakers are still divided over whether inflation requires tighter policy.
European Banks Expand Euro Stablecoin Push
A European bank-backed stablecoin project added 25 new lenders this week, bringing the Qivalis consortium to 37 institutions across 15 countries. New participants include ABN Amro, Sabadell, Rabobank, Bankinter, Bank of Ireland, Handelsbanken, and Nordea. The group is working on a euro-pegged stablecoin as European financial institutions look for locally governed digital payment infrastructure and a stronger role in tokenized finance. For the Metal Pay audience, the story shows traditional banks moving deeper into stablecoins as a payments and settlement layer, not just as a crypto-native product.
SEC Weighs Tokenized Stock Trading Path
The U.S. Securities and Exchange Commission is preparing an “innovation exemption” that could allow trading of tokenized versions of stocks, according to a Reuters report citing Bloomberg News. The plan would potentially let crypto platforms offer blockchain-based stock exposure, though the tokens may not include traditional shareholder rights such as voting or dividends. The proposal remains early, but it points to a broader regulatory shift toward testing tokenized securities inside controlled frameworks. For crypto markets, the significance is clear: tokenization is moving from a DeFi narrative into the center of mainstream market structure discussions.
Bitcoin ETF Flows
Bitcoin ETFs opened the week with $648.6 million in net outflows on Monday, led by heavy redemptions from IBIT at $448.4 million, ARKB at $109.6 million, and FBTC at $63.4 million. Tuesday extended the reversal with another $331.1 million leaving the group, again driven mainly by IBIT, which lost $325.6 million. The weakest midweek day was Monday, while Wednesday was the least negative session at $70.5 million in outflows, with IBIT and FBTC redemptions partly offset by a small $1.1 million inflow into MSBT. Overall, Bitcoin ETFs recorded a difficult week, with $1.15 billion in net outflows through Thursday and IBIT accounting for most of the pressure.
Ethereum ETF Flows
Ethereum ETFs began the week with $86.4 million in net outflows on Monday, led by ETHA at $55.4 million, FETH at $14.7 million, and ETH at $10.1 million. Tuesday stayed negative with another $62.3 million in outflows, as ETHA accounted for $59.4 million of the total while ETHW posted a small $0.8 million inflow. The strongest midweek day was Wednesday, with a smaller $28.1 million outflow as ETHB added $4.4 million against redemptions from ETHA and FETH, while Thursday weakened again to $32.6 million in outflows. Overall, Ethereum ETFs finished the reported week down $209.4 million through Thursday, with ETHA the main source of redemptions.
Top Movers (Coins Available on Metal Pay)
Metal Blockchain was the top performer on the Metal Pay 7-day chart, rising 2.3% and standing out during a cautious week for broader crypto markets. XPR Network also held slightly positive at 0.6%, while LOAN Protocol, Solana, and Bitcoin all moved lower but remained within a relatively narrow range. With Bitcoin ETF outflows pressuring sentiment and the Fear & Greed Index sitting in Fear, the chart suggests Metal ecosystem tokens held up better than several larger-cap names, even without a single obvious public catalyst.
