US spot bitcoin ETFs return to net inflows following four weeks of outflows

Spot bitcoin exchange-traded funds in the United States returned to net inflows of $116.8 million last week after enduring four consecutive weeks of outflows totaling more than $1 billion.

Grayscale’s converted Bitcoin BTC +2.82% Trust was the only spot bitcoin ETF to register net outflows last week, with $171.1 million leaving the higher-fee fund. That came despite GBTC breaking its 78-day outflow streak with $63 million worth of net inflows on May 3 and a further $3.9 million last Monday.

Fidelity’s FBTC dominated last week’s net inflows, adding $111.3 million, followed by Ark Invest’s ARKB, which generated $82.8 million worth of net inflows. BlackRock’s previously dominant spot bitcoin ETF, IBIT, has been more subdued in recent weeks — witnessing its first net daily outflows on May 1. IBIT came in third last week, registering $48.1 million in net inflows. Total net inflows for the ETFs combined currently stand at $11.7 billion.

Overall flows for the spot bitcoin ETFs have slowed significantly since peaking at a net daily inflow of $1.05 billion on March 12, according to The Block’s data dashboard . Bitcoin subsequently dropped 23% from its latest all-time high of $73,836 on March 14 to a low of $56,500 on May 1 before recovering. Bitcoin is currently trading for around $62,700, according to The Block’s price page .

The turnaround in flows was also mirrored by the global crypto investment product market seeing net inflows totaling $130 million for the first time in five weeks — inclusive of the U.S. spot bitcoin ETF net flows — according to a report from CoinShares on Monday.

Weekly crypto asset flows. Image: CoinShares .

Spot bitcoin ETF trading volume also subdued

Despite the flow reversal, trading volume for the U.S. spot bitcoin ETFs declined to $7.4 billion last week, having generated $11 billion in the week prior, according to The Block’s data dashboard .

The volume decline was again mirrored in the global crypto exchange-traded product market falling to $8 billion last week compared to a $17 billion April weekly average.

“These volumes highlight ETP investors are participating less in the crypto ecosystem at present, representing 22% of total volumes on global trusted exchanges relative to 31% last month,” CoinShares Head of Research James Butterfill wrote .

Daily trading volume has declined significantly after reaching a record $9.9 billion on March 5 — as bitcoin first broke past its prior cycle peak of around $69,000.

However, cumulative trading volume for the U.S. spot bitcoin ETFs since they launched on Jan. 11 broke the $250 billion mark last week and now totals $254 billion.

Spot bitcoin and ether ETF hype dies down

The spot bitcoin ETF hype had appeared to have died down, with April’s net monthly outflows reaching $343.5 million , ending their three-month inflow streak and spilling into May. While last week’s net inflows are a positive sign, it remains to be seen whether they indicate a longer-term trend reversal for the U.S. spot bitcoin ETF category.

In contrast, ether-based investment products saw net outflows last week amid declining sentiment on the prospect of spot ether ETF approvals in the U.S. anytime soon. “Low interaction by the U.S. regulators with ETF issuer applications for a spot Ethereum ETF have increased speculation that the ETF approval is not imminent, this has been reflected in outflows which totalled $14 million last week,” Butterfill said.

　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.