Spot Bitcoin ETFs have risen sharply in the first half of May, making up for the money that left them in April. Eric Balchunas, a senior ETF analyst for Bloomberg, says that $1.3 billion has been put into Bitcoin ETFs this month. This increase breaks the downward trend that started in April and brings the total amount of money that has come in since the beginning to $12.35 billion.
When buyers see changes in funds coming into and going out of an ETF, Balchunas tells them to stay calm because these changes are a normal part of the ETF cycle. He is sure that spotting Bitcoin ETFs will give investors good long-term results.
More research from CryptoQuant shows that demand for BTC is rising again, backing up this positive view. Regular and big investors are buying more Bitcoin, which shows that people are becoming more interested in it. This is helping BTC ETF inflows recover.
Bitcoin ETFs See Strong Return of Capital Inflows
In a big change, spot Bitcoin ETFs have seen a strong return of capital inflows over the last week. According to data from SoSo Value, these funds received $257.34 million in new money on May 16 alone. The iShares BTC Trust (IBIT) from BlackRock received the most money, $94 million. This brought its total assets under control to $18 billion. IBIT is now second only to the Grayscale BTC Trust ETF (GBTC), which is still the biggest.
GBTC also saw good inflows; on May 16, it reported a net daily inflow of $5 million. Since it changed from a trust to a spot ETF, this is the third day the product has finished in the black.
Analysts and investors are keeping a close eye on these trends as the behavior of BTC ETFs changes. Even though the market is naturally volatile, people are generally hopeful. They think that Bitcoin ETFs will continue to be in demand and earn them money in the long term.
