Spot Bitcoin ETFs Rebound in May, Countering April’s Outflows
Crypto News– An ETF analyst noted that inflows from spot bitcoin exchange-traded funds (ETFs) in May have compensated for the outflows observed last month. Eric Balchunas, Bloomberg’s senior ETF analyst, mentioned on the social media platform X that bitcoin ETFs have seen a strong performance over the past two weeks, with $1.3 billion in inflows. This figure offsets the entire negative flows recorded in April, bringing the net total back to around $12.3 billion since their launch.
Balchunas emphasized that the recent months highlight why traders shouldn’t react emotionally to inflows and outflows, as it’s a natural aspect of ETFs. He believes that spot bitcoin ETF flows will eventually show long-term net positives. Additionally, he pointed out that the flow amounts on both sides remain relatively small, constituting around 1% to 2% of the funds’ assets under management.
In April, there were approximately $344 million in net withdrawals from spot bitcoin ETFs, with a significant portion occurring on April 29, attributed largely to Grayscale’s converted fund GBTC. However, on May 13, U.S. spot bitcoin ETFs experienced net inflows totaling $116.8 million, reversing the trend of four consecutive weeks of net outflows, as previously reported by The Block.
Total funds managed by spot Bitcoin ETFs
As Balchunas pointed out, the inflows and outflows of spot bitcoin ETFs are relatively insignificant compared to the assets under management (AUM) of these funds. According to data from The Block’s Data Dashboard, Grayscale’s GBTC and BlackRock’s IBIT, two of the largest spot bitcoin ETFs, hold $18.27 billion and $17.31 billion in assets, respectively. Additionally, Fidelity’s FBTC has accumulated $9.64 billion.
Both IBIT and FBTC have set records for the speed at which an ETF reaches $10 billion in AUM. Previously, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) held this record, achieving $10 billion AUM in approximately three trading years. However, IBIT achieved this milestone in just 49 trading days, with FBTC following closely behind at 77 days, as reported by The Block.
FAQs
What did inflows to spot Bitcoin ETFs in May compensate for?
Inflows to spot Bitcoin ETFs in May compensated for the outflows observed in April. In other words, the inflows in May balanced out the outflows from April.
Which source provided this information, and what initiatives were taken?
This information was provided by Eric Balchunas, Bloomberg’s senior ETF analyst. Balchunas noted that inflows to spot Bitcoin ETFs in May compensated for the outflows observed in April.
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