Spot bitcoin ETFs (exchange-traded funds) steadily recovered in the first two weeks of May, recovering all of April’s losses and attracting significant capital inflows.
Analysts such as Bloomberg’s Eric Balchunas believe that spot bitcoin ETFs will continue to generate positive returns in the long run despite short-term fluctuations in inflows and outflows.
What points can be highlighted?
1) Capital inflows: In May, bitcoin ETFs have already attracted $1.3 billion, offsetting April’s negative inflows and bringing the total inflows since launch to $12.3 billion.
2) Growing demand: The growth of bitcoin balances held by regular holders and large investors indicates an increase in demand for bitcoin from these market participants.
3) Leaders in terms of funds raised: BlackRock’s iShares Bitcoin Trust (IBIT) raised $94 million, becoming the leader. The fund’s capital under management reached $18 billion, slightly ahead of the Grayscale Bitcoin Trust ETF (GBTC).
4) GBTC: Net daily inflows into GBTC on May 16 amounted to $5 million, marking the third consecutive trading day the product closed in the black since its conversion from a trust to a spot ETF.
5) The resumption of capital inflows indicates that investors remain optimistic about Bitcoin’s long-term prospects despite short-term volatility.
Spot bitcoin ETFs offer a convenient and regulated way to invest in bitcoin, making them attractive to institutional and retail investors.
