In April, there was a net outflow of approximately $344 million for spot bitcoin ETFs. However, recent data suggests that traders should not let these inflows and outflows affect their emotions. Eric Balchunas, Bloomberg’s senior ETF analyst, believes that the withdrawals from spot bitcoin ETFs in April were offset by the inflows in May.
Balchunas emphasizes that traders should not become overly emotional about the movement of funds in and out of spot bitcoin ETFs. He argues that these fluctuations are merely a part of the ETF life and should not be a cause for concern. Although the amounts involved are relatively small, constituting only about 1% and 2% of the funds’ assets under management, Balchunas is confident that these movements will have a positive impact in the long run.
The net outflow for spot bitcoin ETFs in April amounted to around $344 million, with a significant portion of $51.5 million leaving on April 29. This decrease in funds can be attributed to the actions of Grayscale’s GBTC, as reported by The Block. However, the tide turned on May 13 when U.S. spot bitcoin ETFs experienced net inflows of $116.8 million. Subsequently, investments into spot Bitcoin ETFs reached $151.4 million, $303 million, and $257.3 million on May 14, 15, and 16, respectively.
Balchunas stresses that the assets managed by these funds are of greater importance than the specific inflows and outflows of spot bitcoin ETFs. The Grayscale GBTC and BlackRock IBIT are among the leading spot bitcoin ETFs, with $18.27 billion and $17.31 billion in assets, respectively, according to The Block’s Data Dashboard.
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