Here’s Why Investors Shouldn’t Get Emotional Over Spot Bitcoin ETF Inflows and Outflows: Analyst
$BTC The outflows for April were made up for in just a few weeks in May.
Spot Bitcoin ETFs have become a key part of the entire cryptocurrency ecosystem in just four months after they went live on US financial markets.
However, Bloomberg’s ETF specialist – Eric Balchunas – explained that people should not get too carried away when they see notable changes in the short-term flows.
May Covers April Losses
These products were finally greenlighted by the US SEC in mid-January and caused mayhem when they launched, leading to enhanced volatility but also a new all-time high for BTC’s price in just two months. This transpired when the ETFs, aside from Grayscale’s GBTC, were attracting impressive inflows.
However, the trend started to change on a few occasions in March, but especially in late April and early May. In fact, there’s a negative seven-day streak from April 24 to May 2 when the outflows skyrocketed to over $1.2 billion.
Expectedly, bitcoin’s price suffered during this period, dropping to a multi-month low of under $57,000. Yet, those dark days also passed, and the ETFs started attracting huge inflows in the past week or so.