ETFs
Bitcoin ETFs Offset April Outflows, Analyst Predicts Long-Term Returns
Spot Bitcoin ETFs made up for April’s losses during the first two weeks of May.
Eric Balchunas, senior ETF analyst for Bloombergnoted that Bitcoin ETFs have already seen inflows of $1.3 billion in May, offsetting all of April’s negative inflows for a total inflow of $12.3 billion since launch.
Bitcoin ETFs had a strong two weeks with $1.3 billion in inflows, offsetting all of April’s negative flows, bringing them back around the high water mark of +$12.3 billion net since their launch. This key number IMO because it counts entries and exits (which are normal) pic.twitter.com/tdnZOKEocM
– Eric Balchunas (@EricBalchunas) May 17, 2024
The analyst urged investors not to worry about changes in capital inflows and outflows, as this is part of the natural cycle of ETFs. Balchunas believes that spot Bitcoin ETFs will still generate positive returns in the long term.
CryptoQuant Remarks that the restoration of momentum also combines with the restoration of demand for Bitcoin. Bitcoin balance growth among regular holders and large investors is accelerating again, signaling increased demand for Bitcoin from these market participants.
Source: CryptoQuant
Over the past week, inflows into spot Bitcoin ETFs have recovered from the April pullback. According to SoSo Valuefunds recorded $257.34 million in inflows on May 16.
The leader in terms of the volume of funds raised was iShares Bitcoin Trust (IBIT) from black rock, which received $94 million in revenue. The fund’s capital under management reached $18 billion, slightly lower than that of the Grayscale Bitcoin Trust ETF (GBTC).
GBTC recorded a daily net inflow of $5 million on May 16, the third trading day the product closed in the green since converting from a trust to a spot ETF.