All 11 spot Bitcoin exchange-traded funds (ETFs) saw inflows for the first time since their launch in January. This is a big change in the world of BTC investments.
According to Bloomberg analyst Eric Balchunas, this rare occurrence was observed on May 3. However, Balchunas expressed skepticism regarding the likelihood of such dynamics repeating.
Even though Bitcoin’s price dropped below $60,000 not long ago and investors had already pulled their money out of spot Bitcoin ETFs, Balchunas pointed out that more than 95% of investors chose to keep their cash in the funds instead of selling.
Will the same happen next time? Who knows, but track record says it will be a pretty high % again.
Eric Balchunas, Bloomberg Analyst
Bitcoin Analyst Forecasts Spot ETF Market Dynamics Anticipates Net Growth and Resilient Investor Sentiment
The analyst said again that he thinks the spot ETF market will see both numbers going in and out over time. Ultimately, he thinks these funds will have two important traits: net growth and strong investor opinion.
On May 3, net new money came into Grayscale Investments’ spot Bitcoin ETF for the first time since it began trading in January 2024. With over $15 billion in net inflows since it started, BlackRock’s fund now has $16.93 billion in assets under management (AUM).
A huge amount of funds poured into spot BTC ETFs on May 3—$378.2 million. This differs from May 1, when a record $563.7 million was taken from bitcoin ETFs.
The recent influx of funds into spot BTC ETFs on May 3 shows investors are again interested. However, Balchunas’s doubts about whether this trend will continue show how uncertain the bitcoin investment world is. As the market changes, investors and experts will closely monitor how these ETFs do to understand how the market is feeling and what trends might come up.
