Spot Bitcoin ETFs have successfully offset April losses within the first two weeks of May. According to Eric Balchunas, Senior ETF Analyst, Bitcoin ETFs experienced $1.3 billion in inflows in May, counteracting the negative inflows from April. This brings the total inflow to $12.3 billion since their launch.

Balchunas highlighted that the $1.3 billion inflows in May have returned the ETFs to their high watermark of +$12.3 billion net since launch. He emphasized that fluctuations in capital inflows and outflows are part of the natural cycle of ETFs, urging investors not to worry about these changes. He remains optimistic that spot Bitcoin ETFs will continue to generate positive long-term returns.

The restoration of capital dynamics is also signaling an increased demand for Bitcoin. Recent data shows that Bitcoin’s balance with regular holders and large investors is accelerating, indicating a growing interest in Bitcoin from these market participants.

Over the past week, capital inflows into spot Bitcoin ETFs have rebounded from the April downturn. For instance, funds recorded $257.34 million in inflows on May 16. Leading the pack was the iShares Bitcoin Trust (IBIT) from BlackRock, which saw $94 million in inflows. The fund’s capital under management reached $18 billion, slightly trailing behind the Grayscale Bitcoin Trust ETF (GBTC).

GBTC noted a net daily inflow of $5 million on May 16, marking the third consecutive trading day the product closed in the green since its transition from a trust to a spot ETF.

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