Spot Bitcoin ETFs Thrives Back as May Inflows Offset April Outflows

• The net outflow for spot bitcoin ETFs was around $344 million in April.
• The previous 2 months show that traders shouldn’t become “emotional” about inflows and outflows.

Bloomberg’s senior ETF analyst Eric Balchunas claims that the withdrawals from spot bitcoin ETFs last month were compensated for by the inflows in May.

Balchunas stated:

“The bitcoin ETFs have put together a solid two weeks with $1.3 billion in inflows, which offsets the entirety of the negative flows in April — putting them back around high water mark of +$12.3 billion net since launch.”

Beneficial Impact in the Long Run

The previous two months, according to Balchunas, show that traders shouldn’t become “emotional” about inflows and outflows; they are just “part of ETF life.” Although the quantities of money flowing into and out of spot bitcoin ETFs are very small—about 1% and 2%, respectively—in relation to the assets under management of the funds, he is certain that these movements will have a beneficial impact in the long run.

The net outflow for spot bitcoin ETFs was around $344 million in April, with about $51.5 million departing on April 29. GBTC run by Grayscale was a major factor in these withdrawals. According to a recent report by The Block, net outflows for four weeks came to an end on May 13 when U.S. spot bitcoin ETF saw net inflows of $116.8 million. Investments into spot Bitcoin exchange-traded funds (ETFs) hit $151.4 million, $303 million, and $257.3 million on May 14, 15, and 16, respectively.

Balchunas pointed out that the assets managed by the funds are much more important than the inflows and outflows of spot bitcoin ETFs. Among the top spot bitcoin ETFs, the Grayscale GBTC and the BlackRock IBIT have the greatest assets, with $18.27 billion and $17.31 billion respectively, according to The Block’s Data Dashboard. 

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