Spot Bitcoin exchange-traded funds (ETFs) have made a remarkable comeback in May, reversing the outflows seen in April, according to Bloomberg's senior ETF analyst Eric Balchunas. In just two weeks, Bitcoin ETFs have seen a significant influx of $1.3 billion, effectively wiping out the previous month's losses and bringing them back to a net positive of $12.3 billion since their launch.

This dramatic turn of events highlights the importance of not getting too emotional about short-term fluctuations in ETF flows, as they are a normal part of the investment landscape. Despite the recent volatility, Balchunas remains optimistic that spot Bitcoin ETFs will continue to show long-term net gains, particularly given the relatively small flow amounts on both sides, which represent only around 1% and 2% of the funds' assets under management.

In April, spot Bitcoin ETFs experienced net withdrawals of around $344 million, with $51.5 million leaving on April 29, largely driven by Grayscale's converted fund GBTC. However, on May 13, U.S. spot Bitcoin ETFs saw a significant reversal, with net inflows totaling $116.8 million, ending four consecutive weeks of net outflows. This momentum continued with impressive inflows of $151.4 million, $303 million, and $257.3 million on May 14, 15, and 16, respectively.

The scale of these flows is put into perspective when considering the assets under management of the largest spot Bitcoin ETFs. Grayscale's GBTC and BlackRock's IBIT hold $18.27 billion and $17.31 billion in assets, respectively, while Fidelity's fund FBTC has amassed $9.64 billion. Notably, IBIT and FBTC have broken records for the speed at which an ETF has reached $10 billion in assets under management, with IBIT achieving this milestone in just 49 trading days and FBTC in 77 days.