Bitcoin ETFs Recover April Outflows, Analyst Predicts Long-Term Gains

Bitcoin ETFs Recover April Outflows, Analyst Predicts Long-Term Gains

Spot Bitcoin ETFs have managed to offset the losses experienced in April with substantial inflows in the first two weeks of May. According to Eric Balchunas, Senior ETF Analyst for Bloomberg, Bitcoin ETFs have already attracted $1.3 billion in May, counteracting the negative inflows from April and bringing total inflows to $12.3 billion since their inception.

Balchunas advised investors not to be overly concerned with the fluctuations in capital inflows and outflows, emphasizing that such changes are part of the natural cycle of ETFs. He remains confident that spot Bitcoin ETFs will yield positive long-term returns.

CryptoQuant has also observed a resurgence in demand for Bitcoin, noting that the balances of Bitcoin held by regular and large investors are accelerating, indicating increased interest from these market participants.

Over the past week, spot Bitcoin ETFs have recovered from the April downturn. SoSo Value reported that on May 16, the funds saw $257.34 million in inflows. Leading the charge was iShares Bitcoin Trust (IBIT) from BlackRock, which garnered $94 million in inflows, bringing its total capital under management to $18 billion, just shy of the Grayscale Bitcoin Trust ETF (GBTC).

GBTC, which recently converted from a trust to a spot ETF, recorded a net daily inflow of $5 million on May 16. This marks the third consecutive trading day that the product has closed in the green since its conversion.

This recovery in Bitcoin ETFs highlights the ongoing investor confidence in Bitcoin as an asset class and suggests a positive outlook for long-term returns despite periodic fluctuations.

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