Key Points
- Spot Bitcoin (BTC) ETFs in the U.S. have recorded $0 net inflows for the fourth time since their January launch.
- Despite the short-term outflows, experts believe that BTC ETFs will yield “net positive long-term” returns.
Spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States have once again recorded zero net inflows.
This marks the fourth instance of such an occurrence since these ETFs were introduced in January.
Spot BTC ETFs Amid Market Correction
On May 27th, the broader cryptocurrency market faced a correction, and the spot BTC ETFs remained stagnant.
This is the first time in the preceding two weeks that these ETFs have recorded no inflows.
From May 13th to May 24th, the BTC ETFs registered over $2 billion in net inflows.
The total net inflows in the initial two weeks of May reached $1.3 billion, counterbalancing the outflows witnessed in April.
Long-term Returns Expected
Eric Balchunas, the Senior ETF Analyst at Bloomberg, stated on May 17th that investors should not be concerned about the short-term outflows in the ETF market.
He further explained that BTC ETFs are expected to yield “net positive long-term” returns.
On May 27th, MicroStrategy founder Michael Saylor announced that spot BTC ETFs are currently holding over 1 million BTC across 32 investment products.
This constitutes approximately 5% of the circulating supply of the asset.
As of May 24th, BlackRock holds the highest amount of BTC in its ETF, with a total of 287,168.
This list does not include GBTC shares.
Following the $0 net inflows of the spot ETFs, Bitcoin witnessed a 1.24% drop.
The leading cryptocurrency is currently trading at $67,900.
It’s noteworthy that BTC momentarily reached an intraday high of approximately $70,590 at around 17:25 UTC on May 27th.
