Bitcoin ETFs Net Value Reaches $1.3 Billion in May, Reversing April Outflows
In May, Bitcoin spot ETFs saw significant inflows, recovering from the outflows experienced in April. With $1.3 billion flowing in, Bitcoin ETFs have bounced back to high levels, offsetting the $344 million withdrawn last month.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted that May was a positive month for Bitcoin spot ETFs. He reported that within two weeks, ETF inflows reached $1.3 billion, compensating for April’s outflows. Since their inception, these inflows have brought the net asset value back to approximately $12.3 billion.
Balchunas emphasized that such fluctuations in ETF inflows and outflows are normal. He advised traders not to be overly emotional about these changes, as they are an inherent part of ETF investments. He remains optimistic about the long-term net positive flow of Bitcoin spot ETFs.
April was a challenging month for Bitcoin ETFs, with net withdrawals amounting to $344 million. On April 29 alone, around $51.5 million was withdrawn. The conversion fund GBTC by Grayscale was a significant driver of these outflows. However, this trend reversed in May, with U.S. Bitcoin spot ETFs recording a net inflow of $116.8 million on May 13, ending a four-week streak of outflows.
In the following days, the inflows continued: $151.4 million on May 14, $303 million on May 15, and $257.3 million on May 16. These figures indicate a robust rebound and increasing confidence among investors in Bitcoin spot ETFs.
Despite recent volatility, the inflows and outflows of Bitcoin spot ETFs are relatively small compared to the assets managed by these funds. Grayscale’s GBTC and BlackRock’s IBIT are among the largest Bitcoin spot ETFs, holding $18.27 billion and $17.31 billion in assets, respectively. Fidelity’s FBTC has also accumulated $9.64 billion in assets.
The rapid accumulation of assets by IBIT and FBTC has set records in the ETF industry. IBIT reached $10 billion in assets within just 49 trading days, while FBTC achieved the same milestone in 77 days. This rapid growth underscores the strong demand and investor interest in Bitcoin spot ETFs.
