May Spot Bitcoin ETF Inflows Make Up for April Outflows: Analyst
Spot Bitcoin exchange-traded fund (ETF) inflows in May more than made up for last month’s outflows, according to one ETF analyst.
“The Bitcoin ETF had a solid two weeks with $1.3 billion in inflows, offsetting all of April’s negative flows and returning to its highest level of net gains of more than $12.3 billion since launch,” said Eric, senior ETF analyst at Bloomberg. I wrote: Balchunas of social media platform X.
Balchunas argues that the past two months have shown why traders should not be “emotional” about inflows and outflows. It’s “part of ETF life.” He believes spot Bitcoin ETF flows will be net positive in the long term, adding that the amount of flows on both sides remains small compared to the fund’s assets under management, at around 1% and 2%.
“If you think about it, it’s never ‘it’s over’ or ‘it’s back,’” Balchunas said.
In April, spot Bitcoin ETF net withdrawals were approximately $344 million, with approximately $51.5 million leaving on April 29. These outflows were primarily driven by Grayscale’s convertible fund GBTC. However, U.S. spot Bitcoin ETFs recorded net inflows totaling $116.8 million on May 13, reversing four weeks of net outflows, The Block previously reported.
On May 14, 15, and 16, ETF inflows reached $151.4 million, $303 million, and $257.3 million, respectively.
Spot Bitcoin ETF AUM
As Balchunas points out, spot Bitcoin ETF inflows and outflows are minimal compared to fund assets under management. Two of the largest spot Bitcoin ETFs, Grayscale’s GBTC and BlackRock’s IBIT, have assets of $18.27 billion and $17.31 billion, according to The Block’s data dashboard. Fidelity’s fund FBTC also accumulated $9.64 billion.
IBIT and FBTC broke records for how quickly an ETF accumulated $10 billion in assets under management. The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) previously held this record, taking about three trading years to amass $10 billion in AUM. IBIT raised that amount in 49 trading days, with FBTC coming in second with 77 days, The Block previously reported.
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