Bitcoin ETFs see strong inflows in May, rebounding from April outflows

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18th May 2024 – (New York) Senior ETF Analyst Eric Balchunas of Bloomberg highlights that Bitcoin ETFs have experienced a significant inflow of $1.3 billion in May, effectively offsetting all the negative outflows witnessed in April. Since their launch, these ETFs have amassed a total inflow of $12.3 billion.

Balchunas reassures investors not to be concerned about fluctuations in capital inflows and outflows, as this is a natural part of the ETF cycle. He remains optimistic about the long-term positive returns that spot Bitcoin ETFs are expected to generate.

Furthermore, CryptoQuant observes that the renewed momentum in capital flows aligns with a resurgence in demand for Bitcoin. The balances of regular holders and institutional investors are once again growing at an accelerated rate, indicating increased interest in Bitcoin from these market participants.

In the past week, inflows into spot Bitcoin ETFs have rebounded from the downturn experienced in April. SoSo Value reports that on May 16, these funds attracted $257.34 million in inflows.

Among the Bitcoin ETFs, iShares Bitcoin Trust (IBIT) managed by BlackRock emerged as the leader in terms of funds raised, with $94 million flowing into the fund. Although its assets under management fell slightly short of the Grayscale Bitcoin Trust ETF (GBTC), reaching $18 billion, GBTC still experienced a net inflow of $5 million on May 16. This marked the third trading day in which the product closed with gains since its transition from a trust to a spot ETF.