All spot Bitcoin ETFs see inflows, analyst doubts dynamics will repeat

May 6, 2024 at 5:42 PM UTC

Edited by Brian Stone

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All spot Bitcoin ETFs see inflows, analyst doubts dynamics will repeat

All 11 spot Bitcoin ETFs saw inflows for the first time since the launch in January.

According to Bloomberg analyst Eric Balchunas, such dynamics were recorded on May 3. However, he expressed doubts that such dynamics would ever happen again.

First time ever 1D flows all green, no red for the Bitcoin Bunch. Not going to spike the football like some did during the outflow period but will point out that over 95% of the ETF investors HOLD-ed during what was a pretty nasty and persistent downturn. Will same happen next… pic.twitter.com/3l3uwwmqGy
— Eric Balchunas (@EricBalchunas) May 6, 2024

Balchunas emphasized that despite the previously recorded outflow of capital from spot Bitcoin ETFs and Bitcoin’s (BTC) fall below $60,000, more than 95% of investors maintained capital in the funds and did not sell.

“Will the same happen next time? Who knows, but track record says it will be a pretty high % again.”
Eric Balchunas, Bloomberg Analyst

The expert is confident that the spot ETF market will record both capital inflows and outflows over time. Ultimately, funds will have two characteristics: net growth and relatively strong hands.

On May 3, Grayscale Investments’ spot Bitcoin ETF recorded net inflows for the first time since its launch in January 2024.

Since entering the market, BlackRock’s fund has received more than $15 billion in net inflows, which brought its assets under management (AUM) to $16.93 billion.

On May 3, the capital inflows into spot Bitcoin ETFs increased to $378.2 million. On May 1, a record $563.7 million was withdrawn from cryptocurrency ETFs.