Spot BTC ETFs recorded $0 inflows, Bitcoin price drops

As a researcher with a background in cryptocurrencies and financial markets, I find the recent developments in Bitcoin Exchange-Traded Funds (ETFs) in the U.S. intriguing. The fact that spot BTC ETFs recorded no net inflows for the first time in two weeks on May 27 is worth noting, especially given the significant inflows seen between May 13 and 24.

Four times since their debut in January, US-listed Bitcoin (BTC) exchange-traded funds (ETFs) have experienced zero inflows.

Based on the information from Farside Investors, I noticed that Bitcoin spot ETFs did not experience any growth on May 27 amidst the broader crypto market’s correction. Intriguingly, this marks the first occasion in the previous two weeks where Bitcoin ETFs failed to register any inflows.

Over the past two-week period from May 13 to May 24, there was a recorded inflow of over $2 billion into Bitcoin ETFs. This figure added to the initial net inflows of approximately $1.3 billion in the first fortnight of May, effectively counterbalancing the outflows experienced during April.

The senior ETF analyst at Bloomberg, Eric Balchunas, spoke on May 17th, advising investors not to be concerned about the recent withdrawals from the ETF sector in the short term. He further expressed his optimistic view that Bitcoin ETFs will yield favorable returns over the long term.

Additionally, Michael Saylor, the founder of MicroStrategy, revealed on May 27th that a total of 1 million Bitcoins are currently held by spot Bitcoin Exchange-Traded Funds (ETFs) in 32 different investment products. This equates to approximately 5% of the cryptocurrency’s circulating supply.

32 #Bitcoin Spot ETFs now hold ~1 Nakamoto of $BTC — Michael Saylor⚡️ (@saylor) May 27, 2024

As of May 24, BlackRock manages the largest quantity of Bitcoin within its ETF, with a total of 287,168 coins held, not counting GBTC shares.

Bitcoin experienced a 1.24% decrease in value after the spot ETFs reported no net inflows. Currently, Bitcoin is being traded at $67,900. It’s worth mentioning that Bitcoin reached an intraday peak of approximately $70,590 around 17:25 UTC on May 27th.

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2024-05-28 12:06