Bitcoin exchange-traded funds (ETFs) saw a significant rebound in May after experiencing a decline in April. According to Bloomberg's senior ETF analyst Eric Balchunas, the $1.3 billion inflows in May offset the $344 million outflows in April, bringing the ETFs back to their high-water mark. This reversal is a positive sign for the market, indicating a strong demand for Bitcoin ETFs.

The outflows in April were largely driven by Grayscale's GBTC, which saw $2.5 billion exiting the ETF. However, the inflows in May were led by Fidelity's FBTC, which added $111.3 million, followed by Ark Invest's ARKB, which generated $82.8 million worth of net inflows. BlackRock's IBIT, which had been dominant in recent weeks, saw a slowdown in inflows but still registered $48.1 million in net inflows.

The cumulative inflows for the U.S. spot bitcoin ETFs since trading began on January 11 are now back below the $12 billion mark at $11.7 billion. Despite the fluctuations, the assets under management of the top spot bitcoin ETFs, including Grayscale's GBTC and BlackRock's IBIT, remain significant, with $18.27 billion and $17.31 billion, respectively.

The rebound in May is a welcome development for the market, and analysts believe that the long-term trend for spot bitcoin ETFs remains positive. As Balchunas noted, the inflows and outflows are just part of the ETF life, and traders should not get emotional about them. The focus should be on the assets under management, which continue to grow, indicating a strong demand for Bitcoin ETFs.