Bitcoin
Bitcoin ETFs offset April outflows, analyst predicts long-term returns
Spot Bitcoin ETFs made up for April losses in the first two weeks of May.
Eric Balchunas, senior ETF analyst at Bloombergnoted that Bitcoin ETFs have already recorded inflows of $1.3 billion in May, offsetting all negative inflows in April, for a total inflow of $12.3 billion since launch.
Bitcoin ETFs have put together a solid two weeks with inflows of $1.3 billion, which offsets all the negative flows in April – putting them back around the high water mark of +$12.3 billion net since launch. This key number IMO because it compensates for inputs and outputs (which are normal) pic.twitter.com/tdnZOKEocM
-Éric 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.
CriptoQuant grades that the restoration of momentum is also combined with the restoration of demand for Bitcoin. Bitcoin balance growth with regular holders and large investors is again accelerating, signaling an increase in demand for Bitcoin from these market participants.
Source: CriptoQuant
Last week, capital flows into spot Bitcoin ETFs recovered from the April drawdown. According to More or less valuethe funds recorded inflows of US$257.34 million on May 16.
The leader in volume of resources raised was the iShares Bitcoin Trust (IBIT) of Black stone, which received $94 million in inflows. The fund’s capital under management reached $18 billion, slightly lower than that of the Grayscale Bitcoin Trust ETF (GBTC).
GBTC had a daily net inflow of $5 million on May 16, the third trading day the product closed in the green since its conversion from a trust to a spot ETF.